A Canadian based mortgage services provider, Ledn asserts that it will not be affected by Genesis’ decision to pause withdrawals as the company has not had a working connection with Genesis since the beginning of the last month.
Despite widespread concerns of financial difficulty, the cryptocurrency lender insists business is normal, the company offers mortgage loans, saving accounts, insurance, and other related services. However, Just last week, Ledn disclosed that it owned a small position in Alameda Research, a sibling of FTX.
It is important to note that Ledn’s initial key lending partner was Genesis Global Capital, which now has temporarily halted withdrawals. In the course of time, Ledn has expanded its loan partners and, hence, lowered its risk concentration. The crypto lender further noted that after the month of October, there was no longer any ongoing lending agreement between the two parties.
Genesis Withdrawal Halt
Following the market instability caused by the FTX collapse, the crypto lending arm of Genesis Global Trading, Genesis Global Capital, suspended withdrawals, citing a high volume of withdrawal requests from consumers. Genesis becomes the latest cryptocurrency lender which has cited the distress caused by the FTX crash, as the cause of its current financial difficulties. Another platform BlockFi disclosed that it had considerable exposure to the collapsed cryptocurrency exchange on Tuesday. Since then, the platform has allegedly banned withdrawals and is getting ready for possible Chapter 11 bankruptcy protection filing. Notably, cryptocurrency lending platform Gemini also announced that it too will halt withdrawals.
Many platforms are clarifying the possibilities of potential losses in the aftermath of the problem caused by Genesis’ withdrawal suspension by explaining that they have no business with the troubled platform. Recently, Grayscale made it clear that Genesis Global Capital is neither a service provider nor a counterparty for any of its products along with another blockchain-enabled platform, Tether, which also confirms zero contact with Genesis.