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Hong Kong’s leading crypto exchange, allegedly linked to FTX in the past, shuts down and ceases operations after FTX collapse
Contents
- Genesis Block business hit by FTX crash
- This is how Genesis Block was linked to FTX
Reuters reported that Genesis Block, a major crypto exchange in Hong Kong that runs one of the largest bitcoin ATM networks in Asia, has announced that it will halt OTC trading in the wake of the FTX scandal and would shut down its website next month.
Genesis Block business hit by FTX crash
This information was released to customers in a recent chain email from the company’s compliance department, according to Reuters.
The news agency also spoke with Genesis Block boss Wincent Hung, who said the company was shutting down trading and closing positions to recover some of its cash. The reason he cited is that we don’t know which counterparties would fail next,” referring to FTX and Sam Bankman-Fried.
Apart from that, Genesis Block asked its customers to withdraw their funds and stopped taking new customers.
It should be noted here that Hong Kong-based Genesis Block is not linked to Genesis Global Capital, a subsidiary of the Digital Currency Group, which consequently halted client withdrawals earlier this week, along with its partner Gemini Earn .
important, however, several unnamed sources told Reuters that Genesis Block was planning to close its Hong Kong office anyway and had phased out operations there.
This is how Genesis Block was linked to FTX
According to an unnamed Reuters source, one of the Genesis Block executives previously held the position of director of FTX Hong Kong.
FTX Hong Kong was among more than 130 companies worldwide affiliated with FTX and backed by Sam Bankman-Fried.
Overall, Genesis Block declined to provide comment to Reuters.
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