Alex Dovbnya
Cryptocurrency broker Genesis has once again suspended withdrawals amid ongoing challenges
Cryptocurrency broker Genesis has reportedly suspended withdrawals. Bitcoin, the largest cryptocurrency, has remained stable, currently trading at $26,591, according to CoinGecko data.
Genesis settlement approval
The move that comes after the US Bankruptcy Court for the Southern District of New York approved a settlement agreement between Genesis and the FTX entities. This agreement resolves a dispute in which Genesis will pay $175 million to FTX.
However, this settlement has not been without controversy. Various objections were raised, including by an ad hoc group of Genesis Lenders and the Gemini Trust Company.
Nevertheless, after several hearings and deliberations, the court granted the motion in favor of the settlement, overruling all objections.
Genesis’s woes
In mid-September, Genesis officially stopped all its cryptocurrency trading services, a decision stemming from the severe impacts of the Three Arrows Capital and FTX collapses on the company.
As reported by U.Today, Genesis initially halted withdrawals for its digital asset lending unit back in November 2022.
Earlier this year, Genesis Trading pruned roughly a third of its staff due to its financial and legal problems.
Genesis’s lending unit filed for bankruptcy earlier this January.
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Alex Dovbnya