Genesis Global Capital, the lending arm of crypto investment bank Genesis Global Trading, has halted withdrawals and new lending, according to a CoinDesk report. This is the latest consequence of the collapse of the FTX cryptocurrency exchange. While Genesis Capital’s direct clients are high net worth individuals and institutions, it has a knock-on effect and Gemini Earn, which focuses on retail, has been halted.

Last week, Genesis Trading acknowledged that it had $175 million in capital locked up in FTX and received a $140 million bailout from parent company Digital Currency Group (DCG).

Today’s statement affirms that Genesis Global Capital is a separate legal entity from the broker/dealer Genesis Trading, which continues to operate.

Another DCG group subsidiary, CoinDesk, broke the story about the number of FTT (FTX) tokens that Alamada had on its balance sheet. This was the spark that led Binance CEO Changpeng Zhao (CZ) to tweet his plans to sell Binance’s FTT holdings. The subsequent run on FTX exposed that the exchange did not hold client assets 1:1, leading to its bankruptcy. This has both a direct impact on those who lost funds and an indirect effect, as nervous investors head for the exits.

“We have engaged the best advisors in the industry to explore all possible options. Next week, we will deliver a plan for the loan business. We are working tirelessly to identify the best solutions for the lending business, including but not limited to gaining new liquidity,” Genesis Trading said. Twitter bill. In these circumstances, it will be assumed that the “advisers” are restructuring experts.

The suspension has had a ripple effect on the Winkelvoss twins’ Gemini Earn program (note: Gemini, not Genesis). When clients deposit money into the Earn program, it is outsourced to Genesis Global Capital. Therefore, Gemini Earn withdrawals are also frozen. However, they emphasized that the Gemini exchange is separate and unaffected.

Meanwhile, when Three Arrows Capital filed for bankruptcy six months ago, Genesis Global Trading filed a claim for $1.2 billion. At that stage he was also rescued by DCG. Genesis CEO Michael Moro resigned in August and the company cut a fifth of his staff.