FTX Latest - Crypto Prices Slip as Contagion Hits BlockFi, Genesis and Gemini, Hacker ID Known, Auditors and VCs Fail, Class Action Lawsuit Filed
BlockFi, Genesis and Gemini are the latest crypto victims of FTX contagion.
The Wall Street Journal reports that crypto lender BlockFi is preparing for bankruptcy while today Genesis announced that it was halting redemptions on its lending product and would stop making new loans.
It is claimed that Genesis’ trading and custody businesses remain unaffected.
The cascading effect was seen in full flow when crypto exchange Gemini followed up with an announcement in a blog post that it would be stopping redemptions on its Gemini Earn yield products. Genesis provides services to Gemini.
Top-tier exchange crypto.com could also be skating on thin ice, despite protestations from CEO Kris Marszalek that all client deposits were safe and accounted for, and that it had a healthy balance sheet.
But this exchange on CNBC may have undone all that good work:
When asked by CNBC on Tuesday if Crypto.com holds tokens on its balance sheet, Marszalek said it’s a “very conservatively run business” that holds “mostly fiat and stablecoins as our source of capital.”
“Yeah, but how much?” asked CNBC’s Becky Quick, reminding Marszalek that FTX had “billions of dollars” in its self-created FTT token before it declared bankruptcy.
Marszalek declined to say.
As we reported earlier today the Liquid exchange can be added to the list of firms suspending withdrawals.
And there is some FTX contagion in France breaking out too.
In this interesting tweet thread from the editorial manager of Journalducoin he explains that their sister company - tradingducoin (founded by same guys who created journalducoin.com), have more than €10 million of their user funds locked up on FTX. (extra reporting by Victor Bartolo)
Tradingducoin.com is/was an automated trading app which
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