The case concerning FTX continues to make echoes. After the crypto platform announced a freeze on its transactions, several crypto companies said they were victims of this fall of FTX. On November 10, it was Genesis trading’s turn to do so.
What happened with FTX ?
It all started a week ago (November 2) with an article appeared on Coindesk. This crypto industry news service confirmed Alameda’s track record: Sam Bankman-Fried held billions of dollars in FTX and deposited it as collateral in other loans. However, FTX and Alameda are supposed to be two separate companies and whose accounts should not mix.
As a reminder, Alameda is a crypto hedge fund owned by Bankman-Fried. The latter is also the CEO of FTX.
On November 6, the Binance company announced that following this revelation, it will sell its FTTs. Also, traders rushed to leave the crypto company. The latter processed the largest withdrawal requests of its existence with 6 billion dollars over three days. Which means that currently FTX has entered a liquidity crisis. FTX can no longer respond to withdrawal requests.
$175 million of Genesis Trading locked up on the crypto platform
After a long list of companies that say they can no longer withdraw or are even blocked from FTX, Genesis Trading announces that it is also a victim of the fall of FTX. Genesis trading is both a digital asset trading specialist and a subsidiary of the Digital Currency Group.
For the sake of transparency, Genesis Trading made a point of going public (via their twitter account) that $175 million of their funds are locked in their FTX trading account. However, Genesis Trading would like to reassure its traders that this will have no impact on its market making activities. This blocking of funds does not hinder the operation of its commercial franchise.
Genesis trading is often the victim of such an event. Recently, he lost over $1 billion to 3AC. Users hope that this will not really affect the functioning of the company and that an announcement of the suspension of activities of Genesis Trading following the fall of FTX will never take place.
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