Genesis Trading, an OTC cryptocurrency platform, stopped accepting new loans and frozen withdrawals. Following the ft. collapse, there were “increased requests” from customers at the time of this.
We have hired the best advisors in the industry to explore all possible options. Next week, we will deliver a plan for the lending business. We’re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity.— Genesis (@GenesisTrading) November 16, 2022
Trade operations were unaffected by the changes
The modifications had no effect on spot trading, derivatives trading, or custodial services, all of which were still “fully operational.
Genesis Global Trading, a broker/dealer owned by BitLicense, is an operationally independent entity that carries on as usual and fulfills its obligations.
The liquidity and duration of Genesis Global Capital’s portfolio were adversely affected by Three Arrows Capital’s default. Since that time, we have been reducing the portfolio’s risk while enhancing the quality of our collateral and our liquidity profile. Unprecedented market turmoil resulted from the ft. issues. They generated more withdrawal requests than we currently had available cash, the company said.
Genesis Global Capital
The company will outline a strategy to revive its credit business the following week after discussing all options with hired consultants, including finding new funding.
The loans issued by Genesis Trading decreased from $44.3 billion in January–March to $8.4 billion in the third quarter of 2022. In a meeting with Bloomberg, Derara Islima, the interim CEO of Genesis Global Capital, cited those numbers.
According to the company’s website, the total amount of outstanding loans at the end of the third quarter was $2.08 billion.
Following the revelation of the $175 million blocked accounts at ft. for the derivatives unit, the company raised $140 million from parent company Digital Currency Group.
Genesis Trading and Digital Currency Group
Customers of the Gemini Earn program for the Genesis Trading bitcoin exchange have experienced issues. Management of the latter is attempting to fix them. This has no impact on any other products or services, platform representatives assured.
Don’t forget that in July it was revealed that Genesis Trading $2.36 billion, backed by its parent company Digital Currency Group, which made certain commitments. The company ended up being the hedge fund’s biggest creditor.
Michael Moreau, the CEO of Genesis Trading for seven years, including six as CEO, left the organization in August. He was let go along with one in five platform workers.
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