Genesis Trading suspends redemptions and new loan originations amid FTX crisis
An institutional digital assets trade platform decided to halt withdrawals for its clients to remain away from the negative impact of the ongoing current critical situation of the crypto sector.
Genesis Trading is an institutional crypto assets trading, lending, derivatives & custody provider platform. After May of this year, this platform faced huge financial challenges because of critical volatility in the crypto market, which was actually intiated with the Terra project collapse.
On 16 November, Genesis Trading stated that the current situation of the crypto environment is not good because of the news of the FTX exchange downfall, which is impacting the business of other crypto companies.
The team said that its platform is facing continuous outflow of funds, amid this critical situation, which is a further creating a situation of low liquidity issues. So to remain away from any other big issue platform suspending withdrawal services for now.
“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.”
At the same time, the team confirmed that all types of trading & custody services by this platform will remain open to the clients without any issue.
Genesis Trading also talked about its financial struggle that is going on since the Three Arrow Capital (3AC) problem, which impacted the business of Genesis Global Capital. The team said that the company was already struggling from that incident and now the current situation is also impacting its business badly.
Earlier this a similar kind of action was taken by the popular crypto lending platform BlockFi, to remain away from liquidity issues from the cascade of the FTX crisis.