Luno Malaysia Denies Customer Money Mixed With Parent Company DCG
- Cryptocurrency exchange Luno Malaysia denies that customer funds were mixed with its troubled parent company DCG.
- Luno worries users as it is Genesis’ sister company and lending partner.
- The director of Luno ensures client funds are maintained with a “designated fiduciary partner,” as requested by SC.
Cryptocurrency exchange Luno Malaysia denies that customer funds were mixed with its parent company, digital currency investment company Digital Currency Group (DCG), or its subsidiaries, including the recent app Lenders bankruptcy Genesis, according to Tech in Asia interview with the country manager.
The concern is that Luno is Genesis’ sister company and lending partner. In the latter case, Luno users could sign up for a savings wallet that lets them earn crypto interest. In turn, the crypto assets in those savings wallets would be used by Genesis for its loans.
According to a source who spoke to Tech in Asia, there were worries that money from Luno Malaysia was being combined with money from other nations with access to Genesis in a single wallet.
Aaron Tang, the country manager for Luno Malaysia, told Tech in Asia that none of the customer funds on the platform are connected to DCG or any of its affiliates.
“Most importantly, regardless of how Luno as a business is funded, customer funds are always segregated from corporate funds,”He said.
Tang assured customer funds are maintained with its “appointed trustee partner” per SC requirements.
Since the collapse of FTX, DCG has continuously encountered liquidity problems for its significant exposure. Worst of all was its surviving company Genesis, which was stuck at $178 million on FTX. After holding out for a while, it also had to file for bankruptcy.
Besides, the competition between DCG owners Barry Silbert and Gemini over the payment of $900 million debts related to Gemini Earn products is still ongoing.
Besides the Genesis crash, Luno also laid off 35% of its global workforce last week.
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