Crypto lender Ledn says it has no exposure to Genesis
Quick Take
- Ledn says it is unaffected by Genesis pausing withdrawals as it hasn’t had a relationship with the latter since last month.
- The crypto lender says it is operating as usual amid reports of financial trouble across competitors.
Canadian crypto lender Ledn said it has no exposure to Genesis Global Capital and is fully operational after the latter paused withdrawals.
Genesis Global Capital, which is suspending withdrawals, was Ledn's primary lending partner at the start of its operations. Ledn has since reduced its risk concentration by diversifying its pool of lending partners, Ledn said. The crypto lender added that it did not have any active lending relationship with Genesis beyond October.
Genesis Global Capital, Genesis Global Trading's crypto lending arm, paused withdrawals citing a high volume of withdrawal requests from customers in the wake of the market turmoil triggered by the FTX collapse. Last week, Ledn also stated that it had some exposure to Alameda Research, FTX’s sister firm.
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Crypto lender Gemini said today it was also pausing withdrawals after the Genesis announcement.
Genesis is the latest crypto lender to cite the FTX collapse as a reason for its financial woes. BlockFi revealed on Tuesday that it had significant exposure to the now-bankrupt crypto exchange. The platform has since blocked withdrawals and is reportedly preparing for bankruptcy proceedings.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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