Genesis suspends redemptions at loan business amid crypto fallout

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

Business News News

Crypto broker moves to protect unit after collapse of major exchange FTX

Crypto broker Genesis Global Capital is suspending redemptions and new loan originations at its lending business, it said on Wednesday, in the latest sign of the industry fallout from last week’s collapse of major crypto exchange FTX.

Genesis’ parent Digital Currency Group , an investor that also owns crypto asset manager Grayscale, said on Twitter that the decision to suspend redemptions “was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion”. “Grayscale does not borrow, lend, rehypothecate, or otherwise encumber the products’ underlying assets, and the custodian for the assets is prohibited from engaging in such activity,” it said.Joseph Edwards, investment partner at Securitize Capital said: “This shouldn’t be seen as a step up, but rather as a step outwards, given that Genesis have a number of significant regulated counterparties — there will be discomfort being felt among OTC desks in Europe and North America in particular.

The proposed class action filed late on Tuesday in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the US.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: FTX Latest: Contagion Spreads to Genesis, Winklevosses’ GeminiCrypto brokerage Genesis is suspending redemptions at its lending business after facing what it described as “abnormal withdrawal requests” in the aftermath of the collapse of FTX. Genesis’ lenders include Gemini Trust Co., the cryptocurrency platform run by the Winklevoss brothers. Gemini said it has paused withdrawals on its lending program.
Source: dailymaverick - 🏆 3. / 84 Read more »