February 27, 2024

Genesis announced a temporary suspension of withdrawals

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Genesis announced a temporary suspension of withdrawals

Crypto lending platform Genesis said it is temporarily suspending the processing of customer withdrawal requests and is beginning to seek new sources of liquidity.

Addressing our users and partners inOn Twitter, Genesis said that the negative situation surrounding the collapse of the FTX cryptocurrency exchange resulted in abnormally high withdrawal requests that exceeded the company's current liquidity.

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In this regard, the execution of client requestswithdrawals are temporarily suspended. The Genesis team said it had engaged financial consultants to develop methods to overcome the crisis and find new sources of liquidity.

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This year, this is the second case of “infection” of the Genesis company and its divisions. Its liquidity profile was previously negatively impacted by the bankruptcy of hedge fund Three Arrows Capital.&nbsp;

However, Genesis claims that the cryptocurrencyinvestment bank Genesis Global Trading was not affected by recent events, as it operates “separately from all other divisions of the company.”

Let us remind you that earlier the Gemini cryptocurrency exchange, which is a client of Genesis Global, announced a possible delay in the withdrawal of funds under the Earn program.