FTX market aftershock reportedly causes Genesis Block to cease trading in Hong Kong
In the wake of the recent FTX scandal, another crypto business is feeling the market effects. Genesis Block, a frontrunner for providing cryptocurrency retail services in Hong Kong, announced it will cease trading and shutter operations, according to reports.
According to an email sent out to its customers by the compliance department, the company said from Dec. 10 of this year, it will be closing down its over-the-counter (OTC) online trading portal.
Wincent Hung, the CEO of the company, told Reuters that the company has ceased trading as counterparties continue to shutter in light of the FTX fallout, and no one can tell who is next.
"So we would rather close out all our positions to regain some of our liquidity."The company’s website is still active, and even appears with help messages for customers interested in OTC trading. However, according to the email, the company is asking its customers to withdraw their remaining funds and is no longer accepting new customers.
Genesis Block is not related to the separate crypto company Genesis, which provides institutional cryptocurrency trading services. That Genesis has also been affected by the FTX fallout, as it tweeted that $175 million of its funds are locked up in the defunct exchange.
Sources close to the company said Genesis Block began winding down services earlier this year and cut ties with FTX prior to the fallout. Additionally the company used to operate one of the most robust bitcoin ATM networks in the region, with 29 locations in Hong Kong, which it sold to a third party.
Cointelegraph reached out to Genesis Block for further comment on the situation.
Related: FTX will be the last giant to fall this cycle: Hedge fund co-founder
Genesis is one of many companies in the space who are feeling serious repercussions of the ongoing saga of the fallen exchange.
Like the above mentioned Genesis, Huobi Global said it too has inaccessible funds held up in FTX. The company says it has $18.1 million worth of deposits frozen, of which $13.2 million are client deposits.
The situation surrounding the FTX fallout, affected businesses and repercussions for its former CEO Sam Bankman Fried is currently unfolding.