{"id":70192,"date":"2022-11-16T18:24:00","date_gmt":"2022-11-16T16:24:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70192"},"modified":"2025-09-08T00:38:38","modified_gmt":"2025-09-07T21:38:38","slug":"genesis-global-capital-suspends-crypto-lending-operations","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/genesis-global-capital-suspends-crypto-lending-operations\/","title":{"rendered":"Genesis Global Capital suspends crypto-lending operations"},"content":{"rendered":"<p>The cryptocurrency OTC platform Genesis Global Capital has frozen withdrawals and the issuance of new loans. This followed heightened withdrawal requests from clients in the wake of the FTX collapse.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">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\u2019re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity.<\/p>\n<p>\u2014 Genesis (@GenesisTrading) <a href=\"https:\/\/twitter.com\/GenesisTrading\/status\/1592867210049081344?ref_src=twsrc%5Etfw\">November 16, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The changes did not affect spot and derivatives trading, nor custodial services, which remain fully operational.<\/p>\n<p>The BitLicense-holder broker-dealer Genesis Global Trading is an operationally independent unit, which also continues to function normally and fulfill its obligations, the company said.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u00ab<\/em><a href=\"https:\/\/u1f987.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\"><em>Default of Three Arrows Capital<\/em><\/a><em> <\/em><em>(3AC) negatively affected Genesis Global Capital&#8217;s liquidity and duration metrics for the portfolio. Since then we have been reducing portfolio risk and strengthening our liquidity profile and the quality of our collateral. <\/em><a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"><em>FTX problems<\/em><\/a><em> caused unprecedented market turmoil. They led to heightened withdrawal requests that exceeded our current liquidity\u00bb,<\/em> \u2014 the company explained.<\/p>\n<\/blockquote>\n<p>Next week the firm will present a plan to restore its lending business after reviewing with hired advisers all possible options, including raising new financing.<\/p>\n<p>The volume of loans issued by Genesis Global Capital declined from $44.3 billion in January\u2013March to $8.4 billion in Q3 2022. Acting CEO of Capital, Deraru Islimu, disclosed this in an interview with <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-16\/crypto-brokerage-genesis-suspends-withdrawals-and-originations-at-lending-arm\">Bloomberg<\/a>.<\/p>\n<p>As of the end of Q3, the outstanding loan balance stood at $2.8 billion, according to <a href=\"https:\/\/genesistrading.com\/insights\/quarterly-reports\">the company\u2019s website<\/a>.<\/p>\n<p>The company <a href=\"https:\/\/www.coindesk.com\/business\/2022\/11\/11\/crypto-investment-firm-dcg-gives-140m-equity-infusion-to-trading-firm-genesis\/\">raised $140 million<\/a> from its parent Digital Currency Group after disclosures of <a href=\"https:\/\/u1f987.com\/en\/news\/experts-estimate-the-scale-of-crypto-funds-losses-after-the-ftx-collapse\"> the blocking of $175 million<\/a> of the derivatives unit\u2019s funds on FTX accounts.<\/p>\n<p>Genesis Global Capital&#8217;s troubles have caused problems for Gemini&#8217;s Earn program. Gemini&#8217;s management is making efforts to resolve them. Platform representatives said this does not affect any other products or services.<\/p>\n<p>In July it emerged that 3AC owed Genesis Global Capital<a href=\"https:\/\/u1f987.com\/en\/news\/three-arrows-capital-owes-genesis-a-cryptocurrency-otc-platform-2-36-billion\"> $2.36 billion<\/a>. Its parent Digital Currency Group provided support by taking on certain obligations. The firm was the hedge fund\u2019s largest creditor.<\/p>\n<p>In August, Genesis Global Capital chief Michael Moro<a href=\"https:\/\/u1f987.com\/en\/news\/michael-moro-steps-down-as-genesis-trading-ceo\"> left the company<\/a> after seven years, including six as CEO. Along with him, one in five platform employees were laid off.<\/p>\n<p>Read ForkLog\u2019s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 crypto news, rates and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency OTC platform Genesis Trading froze withdrawals and new loan origination amid heightened withdrawal requests from clients after the FTX collapse.<\/p>\n","protected":false},"author":1,"featured_media":70193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,1236,2315],"class_list":["post-70192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-ftx","tag-genesis-trading"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70192"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70192\/revisions"}],"predecessor-version":[{"id":70194,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70192\/revisions\/70194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70193"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}