The lending division of cryptocurrency asset manager Genesis moved Wednesday morning in New York to put a halt to customer redemptions and new loan originations.
The decision stemmed from the building fallout of FTX’s collapse. Reverberations started with broader exchange liquidity issues triggered by a rush by big-money traders to take their digital assets off of exchanges in favor of safer cold-storage solutions. Now, industry participants told Blockworks, the FTX contagion is spreading to crypto credit markets.
Genesis executives told institutional clients on a call Wednesday morning, according to a source familiar with the matter. Another source last week told Blockworks Genesis was “functionally insolvent.”
A spokesperson for Genesis did not immediately respond to a request for comment. Sources were granted anonymity to discuss sensitive business dealings.
Venture capital firm DCG, the company’s main backer, wrote in a series of tweets Wednesday morning that the custody
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