Crypto Lender Genesis Suspends Withdrawals: FTX Collapse Created ‘Unprecedented Market Turmoil’ (2024)

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Crypto Lender Genesis Suspends Withdrawals: FTX Collapse Created ‘Unprecedented Market Turmoil’ (2024)

FAQs

Crypto Lender Genesis Suspends Withdrawals: FTX Collapse Created ‘Unprecedented Market Turmoil’? ›

Cryptocurrency exchange Genesis on Wednesday suspended withdrawals within its lending unit and blamed the recent collapse of exchange FTX for spurring a spike in withdrawal requests that exacerbated the lender's liquidity—becoming the latest crypto firm embroiled in market turmoil that's forced formerly high-flying ...

Why did everyone withdraw from FTX? ›

The collapse of FTX

It began with the CoinDesk article and the leaked balance sheet. Binance initially announced it would sell all its FTT tokens because of the mishandled and blurred funds. The value of FTT dropped significantly, prompting FTX customers to withdraw money from their accounts.

What is going on with Genesis crypto? ›

Genesis, which filed for bankruptcy in January 2023, is part of Digital Currency Group (DCG). A spokesperson for DCG did not respond immediately to request for comment. Genesis operated a lending program that raised billions of dollars' worth of crypto assets from investors, the SEC has said.

Why did FTX collapse in simple terms? ›

FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low on Nov. 9, 2022.

How much money did customers lose in FTX collapse? ›

At Bankman-Fried's sentencing hearing, Kaplan agreed. He said FTX's customers had lost some $8bn and that its investors had lost $1.7bn.

Who lost the most money in FTX? ›

Tom Brady is the most famous face to promote and invest in FTX — and he also may have suffered the greatest individual loss. The Tampa Bay Buccaneers quarterback owned over 1.1 million common shares of FTX Trading, which equaled about $45 million before the company went bankrupt, according to Bloomberg.

Where has the FTX money gone? ›

Billions in FTX customer and investor money is tied up in an ongoing bankruptcy process. Some who have lost millions of dollars tell CNBC they haven't lost faith in the industry and are cashing out through other means in order to reinvest in crypto.

Is Genesis crypto in trouble? ›

But they lost access to their more than $1 billion worth of crypto when Genesis suspended redemptions in November 2022, just days after the implosion of crypto exchange FTX. In January 2023, Genesis itself filed for bankruptcy.

Who is behind Genesis crypto? ›

Genesis Global Trading, Inc. was founded in 2013. It is a subsidiary of the Digital Currency Group, a venture capital company founded by Barry Silbert. Genesis' business consists of entities that provide trading, lending, and custody digital assets, targeting institutional clients and high-net-worth individuals.

Is Genesis trading in trouble? ›

Against the backdrop of an escalating and public dispute between the leadership of the two firms, Gemini Earn was shuttered on Jan. 10, 2023. Two days later, the SEC filed charges against both companies. That same month, Genesis filed for bankruptcy.

How much money did FTX steal? ›

NEW YORK, March 28 (Reuters) - Sam Bankman-Fried was sentenced to 25 years in prison by a judge on Thursday for stealing $8 billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded, the last step in the former billionaire wunderkind's dramatic downfall.

Did FTX users lose money? ›

It soon emerged that customer funds had gone missing. FTX founder and former-CEO Sam Bankman-Fried is accused of embezzling $10 billion from unsuspecting customers to prop up his hedge fund Alameda Research, buy luxury properties and fund political donations.

Did FTX customers get their money back? ›

For FTX customers, being made whole, according to a judge's ruling, means getting the cash equivalent of what their crypto was worth in November 2022. In other words, they're not seeing any of the upside of FTX's investments or being given virtual coins that would allow them to cash out at higher valuations.

Who lost billions in crypto? ›

Zhao was followed by FTX founder and CEO Sam Bankman-Fried, who lost a reported 23 billion dollars in only three weeks prior to his arrest over conspiracy and fraud charges in late 2022. Despite his losses, Zhao was still the wealthiest individual in the crypto world as of December 2022.

How much does FTX owe customers? ›

Key Takeaways. A new report from the FTX debtors team indicates the failed crypto exchange owes customers $8.7 billion worth of assets. The vast majority of misappropriated assets, roughly $6.4 billion, are denominated in either fiat currency or stablecoins.

What celebrities invested in FTX? ›

Celebrities such as Tom Brady, Larry David, Steph Curry, Shaquille O'Neal, and supermodel Gisele Bundchen immediately come to mind, but there are undoubtedly others that have been initially forgotten.

Will FTX users get money back? ›

FTX bankruptcy: What customers should know about getting crypto and Bitcoin money back. According to the company, all customers will be recouped for their losses—but there's a catch. It's been more than a year since FTX, a one-time mammoth cryptocurrency exchange, collapsed and subsequently declared bankruptcy.

How much of funds is missing from FTX? ›

When FTX filed for bankruptcy, just over $8 billion in customer funds were missing, according to the US Attorney's Office in Manhattan. It was the world's second-largest cryptocurrency trading platform at the time.

Can I still withdraw money from FTX? ›

When the crypto exchange FTX declared bankruptcy in November 2022, investors with money in their FTX accounts found themselves unable to withdraw it. Those investors now have a chance to get some of their funds back, but they'll need to file a bankruptcy claim in the next few weeks.

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