Genesis Client Letter Suggests No Imminent Solution to Withdrawal Freeze
The institutional crypto brokerage has been in talks with creditors and potential investors since the collapse of exchange FTX.
Dec 7, 2022 at 4:38 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TPIELPTEOFCFBMZMK37FF3FBA4.jpg)
(Genesis Trading, modified by CoinDesk)
In a letter to customers on Wednesday morning, Genesis interim CEO Derar Islim said resolution of his company’s lending unit’s withdrawal freeze is likely to be a matter of “weeks” rather than days.
The lending arm of Genesis in November was forced to suspend redemptions following the collapse of crypto exchange FTX. Genesis since has been attempting to raise capital and/or reach a deal with creditors. The brokerage also hired investment bank Moelis & Company to explore options, including a potential bankruptcy, leading to speculation that some sort of resolution might soon be at hand.
This morning’s note from Islim said that Genesis is committed to being as “transparent as possible” with customers and that it is working in consultation with highly experienced advisers and in close collaboration with its owner, Digital Currency Group (DCG).
Islim also noted that all other Genesis operations – namely, trading and custody services – remain fully operational.
DCG is also the parent company of CoinDesk.
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Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.
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