Genesis receives an additional $140 million in equity.
This will strengthen its position as the global leader in cryptocurrency capital markets.
Million equity infusion from its parent company, Digital Currency Group.
According to the company, this decision was made to strengthen its balance sheet and expand its position as a global leader in crypto capital markets.
Genesis further stated that it thinks the equity infusion will enable it to assist its clients and "the growing demand" for its services. This is according to a screenshot of a letter addressed to Wu Blockchain's clients, which was uploaded on its Twitter account.
Genesis Trading stated on October 10 that its derivatives firm had around $175 million in funds locked up in an FTX trading account.
Despite the fact that FTX is experiencing a "liquidity crunch" and just filed for bankruptcy, Genesis promised its clients that the millions of dollars locked up in FTX will not affect its market-making activities.
Genesis further assured its customers that it has no "ongoing financing arrangement with FTX or Alameda."
In light of recent market developments that have taken a toll on the whole cryptocurrency industry, many companies, including Tether, Circle, Kraken, and Coinbase, have publicly said that they are not exposed to struggling firms.
Genesis Trading was one of the key lending firms with exposure to the now-liquid Singaporean crypto hedge fund Three Arrows Capital in July. At that time, former CEO Michael Moro stated that the company was able to limit losses when 3AC failed to meet a margin call on funds borrowed from Genesis.
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