, Genesis said FTX's sudden collapse last week"created unprecedented market turmoil, resulting in abnormal withdrawals requests" that exceeded Genesis' liquidity.
As a result, Genesis said it has temporarily suspended redemptions and new loan originations in its lending business, Genesis Global capital, which had some $2.8 billion in loan volume at the end of last quarter; the company offered no timeline for the suspension but said it plans to"deliver a plan" for the future of its lending business next week.
Genesis said the move comes despite its work to"derisk" its lending business and"shore up [its] liquidity profile" after theCrypto markets ticked down after the announcement, with the price of bitcoin, at roughly $16,580, trading about 2% below its level one day prior.
for bankruptcy last week. Last week, Genesis disclosed its derivatives business had approximately $175 million in funds locked on FTX; however, it also claimed its operating capital and net positions in the firm were"not material" to its business.
FTX is was just a catalyst or window into the cryptocurrency ponzi scheme and many are going to suffer yugely.
Kid was very smart and scammed many people out of millions of dollars that they'll never recover