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."

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX's former research arm, OKX Insights. Before that, he co-founded BeInCrypto.com, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Bitcoinist.com. Before joining the blockchain and crypto industry, he worked for Looper.com, Grunge.com and SVG.com. He tweets via @XBT002 and can be emailed at [email protected].

Editor

To contact the editors of this story:
Larry DiTore at
[email protected]
Michael McSweeney at
[email protected]