Genesis Trading’s lending unit halts customer withdrawals

Crypto exchange Gemini announced that there may be withdrawal delays to its Earn product due to its lending partner halting withdrawals.

Genesis' lending business cannot process customer redemptions or new loan originations.

According to Digital Currency Group, this action follows the market stress that has come with FTX's collapse.

Genesis had earlier said FTX's implosion would not impact its lending unit.

Genesis Global Capital, the lending arm of digital assets platform Genesis Trading, has halted all redemptions as well as loan originations, parent company Digital Currency Group announced on Wednesday morning.

DCG, pointing to the market conditions and the impact being felt across the crypto space following crypto exchange FTX’s collapse, wrote:

“Today Genesis Global Capital, Genesis Trading’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.”

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