Oct 12, 2023 Frank Stewskid
Genesis Halts Withdrawals: Connection to $175 Million FTX Settlement?
Social media platforms are currently abuzz as users unveil that Genesis Global Capital has unexpectedly halted customer withdrawals. These fresh revelations have sparked a wave of speculation within the cryptocurrency circles, with numerous individuals pointing towards Genesis's recent hefty settlement with the collapsed exchange, FTX, as a possible reason behind this development.
To provide context, on October 6, Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York greenlighted a settlement between Genesis and FTX. This move was set to allow Genesis to pay $175 million to FTX, addressing claims that originally towered at a whopping $3.9 billion. This settlement was notably centered around Genesis's substantial loans to FTX's associate, Alameda Research, amounting to over $2.8 billion.
Genesis had voiced optimism about the settlement's terms, seeing it as a way to sidestep drawn-out legal battles. Yet, they were met with resistance, especially from FTX creditors and heavyweights like Gemini Trust, who weren't on board with the agreement.
How Will Genesis' Withdrawal Halt Shape the Crypto Market?
The sudden halt of withdrawals by Genesis, especially following the settlement with FTX, has stirred speculations across the industry. The absence of an explicit reason only deepens the mystery, suggesting that Genesis may be navigating unforeseen financial waters.
The cryptocurrency community is now on edge, keenly awaiting Genesis's next move. The aftermath of this suspension could have pivotal implications for the trust in Genesis, its own trajectory, and ripple effects on the broader cryptocurrency market.
