Crypto World Under Stress from FTX
This seems like a major crypto paralysis: "Institutional crypto lender Genesis Global Capital told customers it is suspending redemptions and will not issue new loans as it sorts through the fallout of FTX’s demise, CoinDesk reported Wednesday. The outfit, which operates as an arm of crypto investment bank Genesis Global Trading, reported that it had $2.8 billion in active loans as of the end of the third quarter of 2022. Genesis Global Capital’s interim CEO said the unit is seeking sources of liquidity and plans to update clients on its status next week." (Fortune newsletter)
FTX could have over 1 million creditors. The crypto platform’s founder Sam Bankman-Fried is reportedly still looking for cash to cover $8 billion in withdrawal requests, even after the company filed for bankruptcy last Friday.