FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong

FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong

The Hong Kong-based cryptocurrency exchange says the market turmoil from the aftermath of FTX is the ultimate cause of the suspension of operations after a year of service liquidation. Another cryptocurrency company is feeling market tightness after the recent FTX scandal. Genesis Block, a leading provider of cryptocurrency retail services in Hong Kong, has reportedly announced that it will cease trading and operations. According to an email sent to its customers by the Compliance Department, the company announced that as of January 1, the online over-the-counter (OTC) trading portal would be shut down.

Wincent Hung, the company’s CEO, told Reuters that the company was delisted because counterparties continue to close amid FTX fallout, and no one can tell who’s next.

“Therefore, we prefer to close all our positions to get some of our liquidity back. The company’s website is still active, and there are even help messages for clients interested in OTC trading. According to the Email, however, the active company Genesis Block is asking its customers to withdraw their remaining funds and is no longer accepting new customers. Genesis Block is unrelated to Genesis, a cryptocurrency company that provides institutional cryptocurrency trading services. Millions of dollars are frozen in the defunct exchange.

Sources close to the company said Genesis Block began shutting down services earlier this year and severed ties to FTX before the fallout. Furthermore, with 29 locations, the company ran one of the most robust Bitcoin ATM networks in the region.in Hong Kong, which she sold to a third party. Genesis is one of several companies in space feeling severe repercussions from the falling stock market’s ongoing saga. Huobi Global, like Genesis, stated that it also has inaccessible funds on FTX. The company said it had $18.1 million in frozen deposits, including $13.2 million in customer deposits. The situation surrounding the aftermath of FTX, the companies affected, and the impact on former CEO Sam Bankman Fried is ongoing.

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