The lending arm of the cryptocurrency brokerage Genesis is suspending redemptions and new loan originations as it deals with a wave of withdrawals following the fall of FTX. In a statement on Twitter, Genesis says the “abnormal withdrawal requests” have exceeded its “current liquidity.
9 billion in the second quarter to just $2.8 billion in the third. Genesis also laid off 20 percent of its workers after 3AC’s collapse and replaced former CEO Michael Moro with COO Derar Islim. Going forward, Genesis says it’s going to announce a “plan for the lending business” next week and that its move won’t affect its trading or custody business. The news is already starting to reverberate throughout the cryptocurrency industry, though.
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