Genesis Trading is the most recent firm to report exposure to FTX.
Genesis Trading is seeking assistance from its parent company, as it did following the collapse of 3AC.
Arm, revealed that its derivatives business had roughly $175 million in funds locked up in an FTX trading account in what it calls an effort to be transparent.
Genesis shared the announcement in a Twitter thread on Nov. 10, clarifying that the locked funds will not affect the firm's market-making activities.
Genesis further indicated that it has no ongoing affiliation with FTX or its sister company Alameda Research, which FTX CEO Sam Bankman-Fried has stated is "also shutting down trading."
The allegation of an ongoing relationship follows other businesses in the crypto industry attempting to separate themselves from the FTX crisis. Also, Tether, Circle, Kraken, and Coinbase all stated that they are not connected to either of the struggling firms.
While Genesis stated in the Nov. 10 thread that its capital and positions in FTX would not prevent the "full functioning of our trading franchise." The firm added that “it remains to be seen whether its parent company Digital Currency Group will be forced to step in, as it did after Genesis suffered as a result of its exposure to 3AC.”
During the FTX meltdown, Genesis stated that it had "printed record volumes," after asserting on Nov. 9 that investors turn to them to manage their risks when market circumstances are volatile.
However, its active loans have plunged 74.8% during the last crypto winter, with its latest Q3 report revealing that active loans outstanding were $2.8 billion, down from $11.1 billion at the same time last year.
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