Following Blockfi, Liquid Global, and Salt Lending halting withdrawals, reports indicate that Genesis Global Trading’s lending unit has halted customer withdrawals. Genesis’ interim chief executive officer Derar Islim said that the company’s trading and custody units were still operational.
DCG-owned Genesis freezes redemptions and fresh loans of lending entities
On November 16, 2022, CoinDesk reporter Nelson Wang detailed that Derar Islam, the current CEO of Genesis Global Trading, reported that the company’s lending arm had halted withdrawals. The CEO of Genesis Global Trading, a firm owned by Digital Currency Group (DCG), further elaborated that the decision only affects the lending side of the company. Amanda Cowie, vice president of communications and marketing at DCG, told Wang that the decision was difficult.
“Today Genesis Global Capital, Genesis’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations. This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion,” Cowie is quoted as saying in the report. The DCG spokesperson added:
This decision affects Genesis’ lending business and does not affect Genesis’ trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries.
The community has assessed that Genesis has suffered from the collapse of Terra, Three Arrows Capital, and the FTX fallout as well. The decision to temporarily suspend specific operations from the lending unit follows Blockfi, Liquid Global, and Salt Lending halting withdrawals as well since the FTX collapse.
Similarly, many companies fell victim to Terra’s collapse and large firms such as Celsius and Voyager Digital filed for bankruptcy protection when the dust cleared after the UST degassing incident and Luna’s fall to zero.
