The crypto firm with some $3 billion in loan volume is the latest to suspend customer withdrawals.
, 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.
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