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.
Photo: Twitter
Genesis' lending business cannot process customer redemptions or new loan originations.
Another crypto firm, Genesis, looks like it is failing.
— Wall Street Silver (@WallStreetSilv) November 16, 2022
Not enough liquidity to meet withdrawal requests.
Hint hint … Get out of all of them, including Binance. pic.twitter.com/MQ24H15O5g
According to Digital Currency Group, this action follows the market stress that has come with FTX's collapse.
JUST IN: Genesis' $2.8 billion #crypto lending unit halts withdrawals, citing FTX collapse.
— Watcher.Guru (@WatcherGuru) November 16, 2022
Genesis had earlier said FTX's implosion would not impact its lending unit.
Crypto Lender Genesis Halts Operations Due To FTX Impact https://t.co/GoTNcNrZr6
— MetaCrunch (@meta_crunch) November 16, 2022
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.
BREAKING:
— Satoshi Stacker (@StackerSatoshi) November 16, 2022
The contagion spreads further. Gemini earn just halted withdrawals. They were partnered with Genesis Trading. pic.twitter.com/7Zvivk7Q9v
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.”