- Genesis CEO told customers it may take weeks to resolve the withdrawal ban.
- The firm pledged to be transparent while consulting with highly experienced advisors for solutions.
- A more detailed chart revealed various arms of Genesis Global Capital with over $1 billion in equities with FTX.
On Wednesday, Derar Islim, the interim CEO of the embattled trading firm Genesis, wrote a letter to customers stating that it may take more weeks before reaching a final resolution on the current withdrawal ban.
CEO Islim added that Genesis would be as transparent as possible while consulting with highly experienced advisors to evaluate the most effective path to preserve client assets and strengthen liquidity.
Last month, the lending arm of Genesis suspended redemptions following the collapse of the crypto exchange FTX. Consequently, according to the New York Times, the company has attempted to raise capital to reach a deal with creditors, hiring investment bank Moelis & Company to explore options, including a potential bankruptcy.
On November 10, Genesis Trading revealed on Twitter that it has $175 million locked in the FTX crypto exchange but does not impact market activities, only to freeze customer withdrawal six days later. A more detailed chart compiled by a Web3 researcher revealed that various arms of Genesis Global Capital have equities of more than one billion dollars with the bankrupt FTX exchange.
Notably, the famous NFT clique, Bored Ape Yacht Club (BAYC), alongside Polygon, the issuer of the MATIC token and Near protocol, invested $50 million in FTX. Financial Times report noted that the disparate bundle of nearly 500 illiquid investments in FTX is split across ten holding companies with a total of over $5.4 billion.
A few months ago, Genesis allegedly lost hundreds of millions of dollars due to loans given to the defunct cryptocurrency hedge firm Three Arrows Capital.
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