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Cryptocurrency brokerage Genesis Global Trading said its lending firm suspended repayments and new loan applications after an “abnormal” number of withdrawal requests exceeded its current liquidity. Genesis explained that the difficulty is related to the market turmoil due to the bankruptcy of rival FTX.
Genesis said it is working “to explore all possible options” and will release a plan for the loan business next week. “We are working tirelessly to identify the best solutions for the lending business, including, among other things, the sourcing of new liquidity,” said Genesis.
Genesis’ lending unit had about $2.8 billion in loan assets in the third quarter, according to its website.