Genesis cites a liquidity crunch due to illiquid assets from FTX collapse

Genesis, a troubled cryptocurrency lender, reportedly wanted a bailout before it stopped allowing withdrawals this week.

One of the most recent casualties of the FTX collapse and the crypto contagion is Genesis Global Capital. According to reports, the lending platform stopped allowing withdrawals on November 16.

The WSJ reported on November 18 that the business had requested a $1 billion loan prior to the trade suspension. A “confidential fundraising document” that the outlet had access to was used as evidence.

Genesis requested a loan on November 17, and cited a “liquidity crunch due to certain illiquid assets on its balance sheet.”

The Winklevoss twins’ Gemini exchange offers Gemini Earn, a yield-bearing product. Gemini Earn has about $700 million in customer funds, according to Bloomberg.