Genesis Crypto Lending Arm Halts Withdrawals Citing FTX Collapse: What's Happening?

The crypto lending division of Genesis Trading, Genesis Global Capital, has temporarily paused its withdrawal and loan origination services as it faces “abnormal” redemption requests. This dramatic decision has sent ripples through the crypto market, adding to the already significant unease following the recent FTX and Alameda Research collapse.

Genesis Global Capital, the cryptocurrency lending arm of Genesis Global Trading, has shut down withdrawals amidst the FTX and Alameda Research collapse. On a November 16th, 2022, update, the company announced the suspension, highlighting the challenging market conditions.

In explaining the decision, the firm cited “unprecedented market turmoil” related to the collapse of troubled cryptocurrency exchange FTX, resulting in “abnormal” levels of withdrawal requests which exceeded their current liquidity. The domino effect of the FTX failure continues to unfold, leaving investors and industry participants concerned about the stability of the digital asset ecosystem.

This withdrawal halt underscores the interconnectedness of the crypto industry and the potential for cascading failures. Is Genesis the next domino to fall after FTX? What does this mean for your crypto investments? Stay tuned for further updates as the situation develops.