![]() ![]() ![]() Genesis executives explained the situation to institutional clients on a call Wednesday morning, according to a source familiar with the matter. “This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion,” the company said. Genesis tweeted its decision to temporarily suspend withdrawals and new loan originations Wednesday. “We have no exposure to Genesis Lending and do not offer, or participate in, any crypto lending programs on our platform,” Kline added. The company said the program would provide interest rates as high as 6% annually on cash and crypto holdings using the company’s self-directed retirement platform.īitcoin IRA co-founder Chris Kline told Blockworks in an email that during this year’s second quarter, “as a precautionary measure and based on our own market assessment and risk management,” his company ended support for the program. “We previously had 1,000 bitcoin in a yield program with the company, but recalled it in May and added it to the rest of our stack, which sits in cold storage.”īitcoin IRA - a company allowing clients to purchase crypto for their retirement accounts - unveiled an interest-earning program offered through Genesis in February 2021. “We have no direct exposure to Genesis,” the representative told Blockworks. But the crypto miner concluded its yield program earlier this year, a spokesperson said. ![]() Hut 8 Mining said in January 2021 that it opened a Bitcoin Yield Account in partnership with Genesis’s lending business, called Genesis Global Capital. “All customers will retain full access to their cryptocurrency held in all Luno wallets, including the Savings Wallet.” “Because of that, all Savings Wallet funds are now on the Luno platform,” the representative said. Luno had previously taken steps to ensure that customers can retain access to Savings Wallet funds in the event withdrawals from Genesis are not possible, a spokesperson said. Genesis partnered with Luno in August 2020, saying at the time it would enable interest-bearing products customized for the Luno community. Circle, Gemini and Luno are among major crypto companies with exposure to digital currency prime broker Genesis, which has halted customer redemptions and new loan originations within its lending division as the fallout of FTX’s collapse continues. ![]()
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