Leading cryptocurrency wholesale network provider throughout Hong Kong said that it has stopped trading since the market is still being shaken by the effects of FTX’s demise as well as solvency difficulties at other significant crypto firms.
According to an email sent to customers by Genesis Block’s compliance department that was accessed by Reuters, the company announced that its over-the-counter trading facility would shut down on December 10. Genesis Block once ran one of Asia’s largest bitcoin ATM networks.
According to the email, the business is also requesting that customers withdraw their money and has stopped taking on new clients.
Genesis Block is unrelated to Genesis Global Capital, a different cryptocurrency participant that last week banned customer redemptions.
According to three persons with knowledge of the issue, Genesis Block had already begun coming to a close its Hong Kong operations before FTX filed for bankruptcy. The company severed relations with the collapsed marketplace this month.
One source with access to the facts claimed that a Genesis Block official had previously served as a director of FTX Hong Kong but has since resigned. One of the roughly 130 FTX-affiliated businesses supported by Sam Bankman-Fried which have initiated Chapter 11 bankruptcy proceedings in the US is FTX Hong Kong.
Considering that they were not authorized to make a public statement, the individuals declined to give their names.
Top management at Genesis Block declined to answer questions.
The webpage for the defunct exchange, Genesis Block, still provides instructions on how to purchase FTT via its extensive ATM network, which includes 29 sites throughout Hong Kong as well as six in Taiwan.
Pertaining to those with knowledge of the situation, a company called CoinHero is currently in charge of running the ATMs in Hong Kong now since Genesis Block sold the company to a third party just last year.