The crypto broker Genesis Trading stops returning the leases

The crypto broker Genesis Trading has suspended the withdrawal and awarding of loans in its loan unit, since the effects of the collapse of the FTX cryptocurrency exchange spread over the market for digital asset.

"FTX has caused unprecedented market turbulence, which led to unusual payout applications that have exceeded our current liquidity," said the group based in New York in a statement on Wednesday.

Genesis is one of the largest financial service providers at the cryptom market and has awarded more than $ 131 billion of loans last year. It was hit hard by the failure of Three Arrows, the crypto hedge fund from Singapore, who registered bankruptcy in July when his bets on Bitcoin and other cryptocurrencies became angry. Court documents showed that Genesis Three Arrows had borrowed $ 2.4 billion loans.

The failure of the $ 32 billion crypto exchange by Sam Bankman-Fried and her sister trading company Alameda Research has sent shock waves through the industry, whereby competing stock exchanges and lenders have hurried to dispel the fear of infection in the past few days.

Genesis said that "the best consultants in the industry has stopped examining all possible options" and will present a plan for the lending business next week. "We work tirelessly to identify the best solutions for the lending business, including the procurement of new liquidity."

The group's trading and custody stores remained fully functional, added. The trade arm was "independently capitalized and operated-and separately from all other Genesis units".

Your parent company, the Digital Currency Group, which belongs to the billionaire Barry Silbert, said that there is "no impact on the business operations of DCG and our other 100 % subsidiaries".

Gemini, another crypto company, said that the situation at Genesis was "aware". The group works with Genesis on a product that they offer to offer customers fixed-interest returns in exchange for the loan of their crypto-assets.