Breaking: Genesis Withdrawal Halt Could Stretch To ‘Several Weeks’

Genesis Withdrawal Updates: Amid difficult circumstances around liquidity crisis, Genesis trading issued a statement to its customers with an update on Wednesday. In an email to Genesis customers, the company’s interim CEO Derar Islim said it could take some ‘weeks’ instead of days to lift the withdrawal halt. Earlier, it was reported that Genesis owes users of Gemini exchange around $900 million. Overall, the situation is complicated considering that many companies are interlinked with the FTX funds.

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Additional Time

In a latest communication to clients, Genesis said it could take additional time to resolve the liquidity issue. The email said Genesis is committed to being as transparent as possible with customers. It also said efforts are on to resolve the issue with the help of advisors. Genesis Trading felt the heat from FTX collapse as it halted withdrawals following news of significant liquidity crunch at the Sam Bankman-Fried crypto company.

“Genesis anticipates that it will take additional weeks rather than days to arrive at a path forward.”

In November 2022, Genesis stopped redemptions and initiation of new loans in response to the FTX collapse. At the time, the company said it was exploring the option of raising new funds. The reason cited was that the withdrawal requests exceeded the company’s liquidity following concerns over FTX. However, the company’s attempts to raise capital of around $1 billion were not successful. Following this, fresh efforts are on to raise at least $500 million.

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