Crypto lending platform Genesis said it is temporarily suspending the processing of client withdrawal requests and is starting to look for new sources of liquidity.
Speaking to its users and partners on Twitter, Genesis stated that the negative situation surrounding the collapse of the FTX cryptocurrency exchange led to abnormally high withdrawal requests that exceeded the company’s current liquidity.
In this regard, the execution of client withdrawal requests has been temporarily suspended. The Genesis team said it has engaged financial advisors to develop methods to get out of the crisis and find new sources of liquidity.
We have hired the best advisors in the industry to explore all possible options. Next week, we will deliver a plan for the lending business. We’re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity.
— Genesis (@GenesisTrading) November 16, 2022
This year, this is the second case of “infection” of Genesis and its division. Previously, its liquidity profile was negatively impacted by the bankruptcy of hedge fund Three Arrows Capital.
However, Genesis claims that cryptocurrency investment bank Genesis Global Trading has not been affected in any way by the recent events, as it operates “separately from all other divisions of the company.”
Recall that earlier the Gemini cryptocurrency exchange, which is a client of Genesis Global, announced a possible delay in the withdrawal of funds under the Earn program.
Source: Bits
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