Last Updated on November 19, 2022 by Bitfinsider
The exposure is valued at more than $50 million, according to one source. The damage is strong enough that Genesis Block will close its OTC operation on December 10, according to a source and an email written to consumers by Genesis Block and received by The Block.
The email states, “With sadness, we will be shutting down the genesisblockotc.com portal website on December 10, 2022 at 6:00 pm HKT.” “The OTC chat group supports withdrawals from user balances in full. Please DO NOT deposit any cryptocurrency assets.”
Wincent Hung and Clement Ip started Genesis Block in 2012 and served both private and institutional clients. According to its website, the OTC trading desk demanded a minimum transaction amount of roughly $20,000 per trade. HK01 reported on Thursday that there was a connection between Genesis Block and FTX. Ip apparently worked as a director at FTX Hong Kong, and the two companies are rumored to share Hong Kong offices. Ip did not respond to a request for comment from The Block.
Reuters reported today, citing a source with knowledge of the situation, that a former director of FTX Hong Kong for Genesis Block quit last month. Last week, 134 FTX-affiliated firms filed for Chapter 11 bankruptcy protection, including FTX Hong Kong.
Genesis Block HK is the most recent company to experience FTX disaster. FTX exposure is held by Crypto.com, Genesis, Galaxy Digital, Nickel Digital, and Vauld. Temasek, Paradigm, and Sequoia Capital, to name a few, have just written down their investments in FTX to zero.
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