Crypto Lender Genesis Trading Exposes a $175M of funds are Locked on FTX

According to a tweet from Genesis Trading Thursday, there are approximately $175 million in locked funds on FTX for the company’s derivatives business.

“As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities,” Genesis said on Twitter. 

The locked fund doesn’t affect their market activities

Despite the assets being locked on FTX, Genesis’ market-making activities have not been affected.

“Furthermore, our operating capital and net positions in FTX are not material to our business. Circumstances surrounding FTX have not impeded the full functioning of our trading franchise,” said Genesis.

In addition, Genesis said it did not have any ongoing relationship with either FTX or Alameda Research. 

“To reemphasize, Genesis has no ongoing lending relationship with FTX or Alameda.”

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previously Genesis Trading said that ninety-five percent of its collateral is stable coins, bitcoins, ether, and dollars. Genesis has accepted doing trading business with FTX, but they  haven’t extended the relationship to lending yet.

Our business ops, including lending and trading across spot and derivatives, continue to run normally and our balance sheet remains strong. Yesterday was a top 5 volume day for our derivatives business as clients turn to us during volatile market conditions to manage their risk.

— Genesis (@GenesisTrading) November 9, 2022

“Our business ops, including lending and trading across spot and derivatives, continue to run normally and our balance sheet remains strong. Yesterday was a top 5 volume day for our derivatives business as clients turn to us during volatile market conditions to manage their risk,” the firm tweeted on November 10. 

Maintaining leading market shares

The Genesis Group reported that all of their products are effectively managed to meet the needs of their clients globally.

“In the past two days, we printed record volumes, maintained leading market share, and supported clients with their ongoing derivatives needs.”

In its previous tweet, Genesis noted that its risk and trading teams continually assess market conditions to optimize its positioning and operations.

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Our experienced trading and risk management teams are constantly assessing credit, volatility, and liquidity in the market to optimize our positioning and operations. Genesis is committed to being a leading digital assets market maker and continuing to drive the industry forward.

— Genesis (@GenesisTrading) November 8, 2022

“Genesis is committed to being a leading digital assets market maker and continuing to drive the industry forward.”

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