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Crypto: FTX contagion: Genesis’s lending arm and Gemini Earn program pause withdrawals

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Crypto financial services firm Genesis Global Trading’s lending arm is pausing redemptions and new loan obligations after digital asset exchange FTX filed for bankruptcy last week.

The unit, Genesis Global Capital, is also the lending partner at crypto exchange Gemini’s Earn program, which was supposed to allow customers to lend their crypto to certain institutional borrowers and earn interest.

“FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity,” Genesis wrote in a tweet Wednesday. Genesis Global was earlier hit by the collapse of crypto hedge fund Three Arrows, which filed for bankruptcy in July, according to the firm.

Genesis has hired advisors to explore potential options and said it would deliver a plan for its lending business next week, according to its tweet.

Gemini said it is working with Genesis to help customers redeem their funds from its lending program as quickly as possible.

Representatives at Genesis didn’t respond to requests seeking comment.

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