Grayscale says products are operating 'business as usual' following Genesis withdrawal freeze

Quick Take

  • Grayscale has said that Genesis Global Capital is not a counterparty or service provider for any of its products.
  • The statements come after Genesis Global Capital suspended withdrawals.

Grayscale said that its products are operating "business as usual" and operations have not been impacted by "recent events" after Genesis Global Capital halted withdrawals. 

Grayscale said it's not a counterparty or service provider for any of its products. Genesis Global Trading, a separate entity, is an affiliate of Grayscale.

The company addressed its Grayscale's Bitcoin Trust, GBTC, which it said remains backed by underlying assets that are "safe and secure, held in segregated wallets in deep cold storage by our custodian Coinbase."

Grayscale also noted that it "does not borrow, lend, rehypothecate, or otherwise encumber the products' underlying assets, and the custodian for the assets is prohibited from engaging in such activity." 

The statement follows a slew of crypto exchanges and entities scrambling to prove reserves following the high-profile collapse of FTX, which filed for Chapter 11 bankruptcy protection last week.

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