Genesis Trading Discloses $175m of Frozen Funds in FTX

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Last Updated on November 11, 2022 by Bitfinsider

Genesis Trading, the market maker and lending arm of Digital Currency Group, disclosed that its derivatives company had around $175 million in an FTX trading account.

Genesis announced the announcement in a series of tweets published on November 10, in which the company underlined that the locked funds will not affect their market-making activities.

Genesis has also said that they have no ongoing contact with FTX or its sister business Alameda Research, which FTX CEO Sam Bankman-Fried has stated is “also shutting down trading.”

Tether, Circle, Kraken, and Coinbase have all said they are not exposed to the struggling enterprises, prompting the denial of an ongoing association.

Genesis asserted that it has “printed record volumes” in the wake of the FTX debacle, after declaring on November 9 that investors come to them to minimize their risks during uncertain market conditions.

Nonetheless, its active loans had decreased by 74.8% during the most recent crypto winter, with its last Q3 report indicating that active loans outstanding amounted to $2.8 billion, compared to $11.1 billion at the same time last year.

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