(Reuters) -Genesis is temporarily suspending redemptions and new loan originations at its lending business, the crypto broker said on Wednesday, the latest sign of the industry fallout from last week’s collapse of major crypto exchange FTX.
“We have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business. We are working diligently to shore up the necessary liquidity to meet our lending client obligations,” a Genesis spokesperson said in a statement.
Genesis’ parent Digital Currency Group, an investor which also owns crypto asset manager Grayscale, said on Twitter that the decision to suspend redemptions “was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.
The suspension at Genesis “has no impact on the business operations of DCG and our other wholly owned subsidiaries”, Digital Currency Group tweeted.
Genesis Trading’s derivatives business has approximately $175 million in locked funds on FTX, the company said Thursday.
(Reporting by Mehnaz Yasmin in Bengaluru and Alun John and Elizabeth Howcroft in London; Editing by Shounak Dasgupta and Louise Heavens)
