Genesis suspends withdrawals following FTX crash

Having $175m held with the crumbling cryptocurrency exchange, Genesis has announced a temporary freeze on customer withdrawals.

Cryptocurrency brokerage Genesis has suspended its withdrawals due to the collapse of FTX.

The company announced to its clients that it is suspending withdrawals because of “unprecedented market turmoil” following the crash of Sam Bankman-Fried's crypto exchange FTX.

Yesterday, the cryptocurrency lender said: “In consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.”

The company took to Twitter to comment on its decision to hold customer funds. “As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities”, it read.

Although the demise of FTX has caused several problems in the cryptocurrency space, Genesis stated that its decision to freeze withdrawals is a “temporary action”.

The circumstances “have not impeded the full functioning of our trading franchise”, and “the impact lies with the lending business at Genesis and does not affect Genesis’s trading or custody businesses”, and has “no impact on the business operations of DCG and our other wholly-owned subsidiaries”.

 

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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