The move by Genesis does not affect its other business lines, including crypto trading
The lending division of cryptoasset manager Genesis has put a halt to customer redemptions and new loan originations, a move that’s already disrupting crypto services across the ecosystem.
The decision stemmed from the building fallout of FTX’s collapse. Reverberations started with broader exchange liquidity issues triggered by a rush by big-money traders taking their digital assets off of exchanges in favor of safer cold-storage solutions.
Now, industry participants told Blockworks, the FTX contagion is spreading to crypto credit markets and hit one of their largest operators — Genesis.
Genesis executives explained the situation to institutional clients on a call Wednesday morning, according to a source familiar with the matter. Another source last week told Blockworks that Genesis was “functionally insolvent.” Sources were granted anonymity to discuss sensitive business dealings.
Full story at Blockworks