Bitcoin: Genesis suspends withdrawals from its trust firm after FTX collapse

The cryptocurrency platform has confirmed that its spot derivative trading and custody businesses remain fully operational.

The financial services company in the crypto-asset market Genesis has “temporarily” stopped withdrawing funds from its credit subsidiary Genesis Global Trading, after the collapse of the FTX platform, which declared bankruptcy last week.

“FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests that have exceeded our current liquidity,” the entity explained in a series of tweets.

“Our first priority is to serve our customers and preserve their assets. Therefore, in consultation with our advisors, we have taken the difficult decision to temporarily suspend repayments and create new loans in the area of ​​credit,” it reported.

However, the company confirmed that its spot derivatives trading and custody business remains fully operational, confirming that crypto broker Genesis Global Trading is capitalized and operates independently of all other Genesis entities.

Last week, FTX decided to file for Chapter 11 bankruptcy protection in the United States to conduct a structured process of asset valuation and liquidation for the benefit of the parties involved.

Likewise, the company announced the resignation of Samuel Bankman-Fried from the old position of corporate counsel, at the head of which John J. Ray III had been appointed.