Genesis Trading Halts Lending Payouts
Genesis Global Trading has suspended all payouts and new loans in the aftermath of the FTX bankruptcy.
Interim CEO Derar Islim told investors in a call Wednesday that withdrawal requests accelerated after the collapse of FTX and sister company Alameda Research, both owned by Sam Bankman-Fried.
Genesis services institutional investors with $2.8 billion in active loans as of Q3 2022.
Genesis' other trading and custody services are continuing to operate. However, given the current situation, Islim said that all non-essential expenses have been put on hold until further notice.
The Genesis team is currently focused on ensuring that all investor funds are safe and accounted for. Islim reassured investors that all funds held by genesis are segregated and not at risk.
The FTX bankruptcy has been a major blow to the crypto industry, with many companies left scrambling in its aftermath. It remains to be seen how Genesis will weather the storm, but for now, it seems they are taking all the necessary precautions to protect their investors.
Gemini told customers Wednesday that it "has paused withdrawals and will not be able to meet customer redemptions". It stated further that it is working "as quickly as possible" to redeem customers. All other Gemini products and services are operable and not exposed to FTX.
Sino-Global, a crypto investment firm, reported that it had “mid-seven figures” exposed to FTX. Ikigai told investors it no longer has access to a “large majority” of its assets that were stored on FTX. Stablecoin Tether posted on its blog that it had “zero exposure to Genesis.”
Genesis had already incurred heavy losses this year in the wake of the Three Arrows Capital debacle.
