Genesis Block, a cryptocurrency trading service in Hong Kong, will close its trading portal on Dec. 10, Reuters reported on Friday.
Another crypto company is facing the market impacts of the current FTX incident. A leading provider of bitcoin retail services in Hong Kong, Genesis Block, has reportedly declared it will stop trading and shut down.
A company compliance email stated that the company would be shutting down its OTC online trading platform as of December 10 of this year. It’s impossible to predict who would be the next counterparty to close their doors as a result of the FTX disaster, therefore CEO Wincent Hung told Reuters that his company has halted trading.
“So we would rather close out all our positions to regain some of our liquidity.”
The company’s website appears to be operational, complete with informational messages for clients interested in over-the-counter trading. The email states that the company is no longer accepting new customers and requests that all existing customers remove their remaining monies immediately.
It should be noted that Genesis Block has no connection to Genesis, another cryptocurrency startup that facilitates bitcoin trading for large financial institutions. That Genesis is also feeling the effects of the FTX collapse, as the company stated that $175 million of its funds were stuck in the bankrupt exchange.
Earlier this year, Genesis Block reportedly began shutting down services and severed relations with FTX in anticipation of the backlash. Also, the business sold off its bitcoin ATM network, which had 29 locations across Hong Kong and was among the most extensive in the region, to a rival company.
Genesis is just one company in the industry suffering from the continued fallout of the defunct exchange. Huobi Global, like Genesis above, said it has unreachable cash stuck in FTX. Approximately $13.2 million of the total $18.1 million in frozen deposits are from customers, the business reports. The aftermath of FTX, the companies affected, and the consequences for the company’s former CEO, Sam Bankman Fried, are still developing.
