Genesis said earlier that it has about $175 million in locked funds in its FTX trading account for its derivatives business.
Digital Currency Group, a crypto investor, is giving $140 million in new stock to one of the companies it owns, Genesis Global Trading.
“While recent market events haven’t affected how our lending and trading businesses work, Genesis has taken steps to strengthen its balance sheet by getting an additional $140M in equity from our parent company, Digital Currency Group,” Genesis told clients in an email, referring to the latest drop in the crypto market caused by the collapse of crypto exchange FTX. A DCG spokesman confirmed that the email was real.
In a note to clients, Genesis said, “This additional capital will strengthen our position as the world’s leader in crypto capital markets and allow us to support our clients and the growing demand for our services.”
Genesis said this week that about $175 million is locked up in its FTX trading account for its derivatives business.
“This does not change how we make markets,” the company said in a tweet. Genesis also said that it does not lend money to FTX or Alameda Research, two companies started by entrepreneur Sam Bankman-Fried that have been in a free fall since a news report last week raised questions about Alameda’s backing.
DCG is also the company that owns CoinDesk, which runs as a separate subsidiary.
The Block was the first to tell the news about the equity infusion.
