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Genesis Withdrawal Freeze has no immediate fixes, says interim CEO

                                                            <span style="font-weight: 400">Ein Schreiben von Genesis Interims-CEO Derar Islam an die Kunden vom Mittwoch deutete an, dass der Auszahlungsstopp des Unternehmens wahrscheinlich in den kommenden „Wochen“ nicht gelöst werden wird. </span>
  • The letter, first seen by CoinDesk, said Genesis is committed to being as “transparent as possible” with its customers throughout the process.
  • The CEO also said that Genesis is in close consultation with experienced advisors and its owner, Digital Currency Group (DCG).
  • Genesis froze payouts shortly after FTX filed for bankruptcy in November, during which its derivatives business lost $175 million inside the exchange.
  • DCG provided Genesis with a $140 million cash injection shortly thereafter, but that wasn’t enough to solve its liquidity problems. The lending business froze customer withdrawals on Nov. 16, prompting it to reportedly searched $1 billion emergency aid.
  • After such funding was not obtained, a report the following week recommended The company would go bankrupt without outside support. The company has since on board Reorganization of lawyers to try to avoid that fate.
  • Payout freezes have historically signaled the impending deaths of exchanges and lenders. company like CelsiusVoyager, FTX and BlockFi all filed for bankruptcy shortly after similar actions this year.
  • Freezing Genesis has also affected Gemini Earn, which Genesis is reportedly a part of owes customers $900 million. However, users of other areas of Genesis, including its trading and custodial services, are still unaffected.
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Source: Crypto News Deutsch

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