Genesis stops crypto loans and accuses FTX-Implosion

Genesis stops crypto loans and accuses FTX-Implosion

The credit department of the cryptocurrency administrator Genesis moved in New York on Wednesday morning to stop the repayments of customers and the awarding of new loans.

The decision resulted from the consequences of the collapse of FTX. The reverberation began to take their digital assets from the stock exchanges with wider problems with the stock market liquidity, which were triggered by a rush of large money dealers in favor of secure cooling stores. Blockworks participants have now announced that the FTX attachment spreads to the crypto credit markets.

According to a source familiar with the matter, Genesis said institutional customers on Wednesday morning on Wednesday morning. Another source announced last week that Blockworks Genesis was "unable to pay".

A spokesman for Genesis did not immediately answer a request for comment. Anonymity was granted to the sources to discuss sensitive business relationships.

The risk capital company DCG, the company's main supporter, wrote on Wednesday morning in a number of tweets that the custody and trade branches of Genesis were not affected.

"This decision was made in response to the extreme market repulsion and the loss of trust in the industry caused by the FTX implosion," said the company.

Coindesk first reported the message from the setting to the crypto company's credit facilities.

This is a developing story. It is updated.

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The contribution Genesis stops Crypto Lending, Blames 'FTX Implosion' is not a financial advice.