Genesis Block HK is Over $50 Million in Arrears on FTX

Published on:

Last Updated on November 19, 2022 by Bitfinsider

Genesis Block HK, a Hong Kong-based crypto over-the-counter (OTC) trading firm, has funds locked in the defunct crypto exchange FTX, according to two sources familiar with the situation.

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 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, 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.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.