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Genesis Block to Halt Operations Amid Potential FTX Repercussions

Genesis Block was Asia’s biggest Bitcoin ATM provider.
| Cryptopress
Updated: November 24, 2022

CryptoPress

The FTX’s contagious impact continues to spread across the cryptocurrency sector. Genesis Block, once Asia’s biggest Bitcoin ATM provider, is one of the enterprises in the cryptocurrency industry suffering from the FTX crash.

According to a Reuters report, which was picked up by other media outlets, the business notified its customers via email that it would stop its OTC trading facility on December 10. OTC trading, also known as over-the-counter trading, is conducted directly between two parties without the supervision of an exchange.

The CEO of Genesis Block Wincent Hung told Reuters that the firm has opted to close due to the aftermath of FTX and the potential for contagion, which might cause other companies in the industry to declare bankruptcy.

“We have ceased trading because we do not know which of our counterparties will fail next; therefore, we prefer to close all of our positions in order to recover a portion of our liquidity.”

Contagion Effect

Cointelegraph quotes sources close to the firm as saying Genesis Block started reducing services early this year and severed links with FTX prior to the crisis.

According to the article, the firm has also ceased taking new customers and has urged existing customers to remove any remaining cash.

This is not to be confused with American cryptocurrency bank Genesis Global Trading, which has also been hit and is now seeking emergency loans of at least $1 billion to maintain operations.

According to other sources, several of the largest US institutions, including JPMorgan and Wells Fargo, might be among those worst affected by the FTX.

Cover: Free Stock photos by Vecteezy

© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.

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