Genesis suspends withdrawal of funds from subsidiary after FTX collapse

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The company assures that the platform’s failure has caused “unprecedented market turmoil”.

The fall of the cryptocurrency platform FTX threatens to have a domino effect in this market segment. Just days after the company’s bankruptcy, Genesis Global Trading, another leading digital asset trading platform, has just announced that it is temporarily suspending all withdrawals from its lending partner due to “unprecedented market turmoil that has resulted in withdrawal requests from more than our current liquidity.”

However, the company has underlined that spot trading and custody of derivatives remain fully operational, underlining that crypto broker Genesis Global Trading is capitalized and operates independently from all other Genesis entities.

It’s true that closing that window to allow clients to withdraw their investments could be one way to avoid collapse. But it also shows the nervousness gripping a market that has been showing clear signs of exhaustion for months.

Without going any further, the price of bitcoin (one of the most popular cryptocurrencies in the market) has fallen below $15,700 in recent days. To get a feel for the collapse, in early November it was trading above 22,000. And in March it was almost $43,000.

This is just one more piece of evidence of the complex situation that everyone who bets on the cryptocurrency market goes through on a daily basis. “Our number one priority is to serve our customers and preserve their assets,” Genesis indicated via a Twitter thread announcing the drastic decision to ban refunds from its customers.

“In consultation with our financial advisors and the board, we have made this difficult decision to temporarily suspend loan repayments and new loans,” the company explained.

Source: La Verdad

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