Genesis Trading, the market maker and lending arm of Digital Currency Group, said that its derivatives firm had over $175 million worth of fund stashed in an FTX brokerage account in what it claims as an endeavor to be transparent.
The news was published by Genesis in a thread of tweets on November 10; the company explicitly stated that the locked funds would not impede their business activity.
Additionally, Genesis asserted that they were in no affiliation to FTX or its sister entity Alameda Research, which FTX CEO Sam Bankman-Fried has said is “also winding down trade.”
Other companies in the crypto industry are trying to isolate themselves from the repercussions of FTX, and Tether, Circle, Kraken, and Coinbase have all stated that they are not tied to either of the struggling companies, prompting the denial of an ongoing association.
While Genesis stated that the “full function of our trading franchise” will not be prevented via its capital and positions in FTX, it is unclear whether it will be necessary for parent company Digital Currency Group to intervene, as it did after the negative effect that Genesis experienced after its association with the Three Arrows Capital’s (3AC).
In the wake of the FTX affair, Genesis asserted that it had “printed record volumes” after claiming on November 9 that investors employ them for risk management during unpredictable market conditions.
However, during the most recent crypto winter, its ongoing loans had decreased by 74.8%. Its most recent Q3 report revealed that the total amount of active loans at the time was $2.8 billion as opposed to $11.1 billion last year.
