Genesis Trading stopped cryptolending operations
Cryptocurrency Platform Genesis Trading froze the withdrawal of funds and the issuance of new loans. This happened against the backdrop of “increased requests” from customers after FTX collapse.
Changes did not affect trading operations in the spot and derivative markets, as well as caste -diode services that remain “completely efficient”.
Owning Bitlicense Broker Genesis Global Trading is an operational-dependent structure that also continues to function and fulfill its obligations, the company said.
“Default Three Arrows Capital (3AC) negatively influenced the liquidity and duration of the Genesis Global Capital portfolio. Since then, we have reducing the risks of the portfolio and strengthen our liquidity profile and the quality of our security. FTX problems caused unprecedented shocks in the market. They led to increased requests to withdraw funds that exceeded our current liquidity “, – explained in the company.
Next week, the company will present a plan for healing its credit business after studying with hired consultants of all possible options, including attracting new financing.
The volume of Genesis Trading loans decreased from $ 44.3 billion in January-March to $ 8.4 billion in the third quarter of 2022. Such numbers brought and. about. CEO Genesis Global Capital Derara Islim in an interview with Bloomberg.
At the end of the third quarter, the volume https://gagarin.news/news/an-interview-with-dmitry-budorin-hacken/ of outstanding debt of loans issued was $ 2.8 billion, according to the company’s website.
The company attracted $ 140 million from the Digital Currency Group maternal company after disclosing $ 175 million of a derivative unit in accounts in FTX.
The difficulties of Genesis Trading were the reason for the problems of the Earn of Earn Bitcoin-Birzhi Gemini program. The management of the latter makes efforts to solve them. Representatives of the platform assured that this does not affect any other products and services.
Recall that in July it became known that 3AC owed Genesis Trading $ 2.36 billion. The latter supported by her maternal company Digital Currency Group, which took on certain obligations. The company turned out to be the largest lender of the hedge fund.
In August, the head of Genesis Trading Michael Moro left the company after seven years of work, including six – as a CEO. Every fifth platform employee was reduced with him.
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