According to the Wall Street Journal, crypto lender Genesis Trading sought to raise up to $1 billion in cash prior to its decision to block withdrawals on the evening of November 16.
“Currently our retail partners are asking for massive withdrawals, and institutional clients are also looking to get their liquidity back.”
Despite this, according to the Wall Street Journal, the platform did not receive any help, leading to the decision to stop supporting withdrawals.
According to a notice posted on the evening of November 16, Genesis Trading announced that only their lending unit, Genesis Global, experienced an interruption in operations, and other parts of the company were still normal. Other companies owned by DCG (the parent company), Grayscale investment fund and mining company Foundry also denied being affected.
The reason given by the firm is that for the current difficult situation, Genesis has continuously had losing deals in 2022, the latest being stuck at $175 million on FTX.
Since then, many other major players in the crypto industry have denied involvement from the firm.
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