Genesis Global Capital, the crypto lending arm of Genesis Global Trading has halted the redemption and issuance of new loans, according to an update from the firm on Twitter.
Genesis Global Trading is a separate entity and continues to operate as usual. Both the firm’s spot and derivatives trading, as well as custody business, remain unaffected according to the tweet.
The move by the crypto lending unit comes in wake of the FTX collapse and “extreme market dislocation”. This has resulted in “abnormal market requests which have exceeded [Genesis’] liquidity”.
Genesis is currently consulting with advisors on a plan forward. The firm announced it will deliver clarity on future plans as early as next week while it attempts to source new liquidity.
The unit is reported to have $2.8B in active loans.
This article originally appeared on The Tokenist
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