Genesis Block Ceases Its Operations In Hong Kong, Reason Is FTX

The FTX scandal is turning out to be a trend even after two weeks. The aftershocks of the FTX collapse are still being felt throughout the cryptocurrency industry.

Genesis Block Ceases Trading Operations

Even now, many firms are opening up about their losses due to the FTX crash. Many firms have even stopped running their operations due to the FTX outbreak.

Genesis Block is the latest addition to the list of firms that have been swallowed by the FTX contagion. Genesis has been operating in Hong Kong as a cryptocurrency entity.

It has been providing retail services in the cryptocurrency segment and had been among the first firms to gain access to crypto in Hong Kong.

The firm has recently announced that it has halted its trading operations in Hong Kong. As per inside sources, the firm is going to fully shut down its operations in the wake of the FTX downfall.

Yet another firm from the cryptocurrency industry goes down causing a great deal of damage to the cryptocurrency industry’s reputation.

Firm to Shut Down OTC Operations

The officials at Genesis Block have also shared a communication about their over-the-counter (OTC) service. As per the latest update, the OTC online trading portal will be operating until December 9, 2022.

After that, their OTC trading service will be put out of operation as well.

Vincent Hung’s Statement on the Matter

While many are under the impression that Genesis Block is directly linked with FTX, the CEO ‘Vincent Hung’, provided clarity on the matter.

Hung revealed that due to the FTX collapse, a number of businesses have shut down their operations and the contagion is coming to no end.

He added that there is no saying which firm would shut down its operations next. As there is too much risk and uncertainty across the board, they are not willing to operate and risk their investors’ funds.

Therefore, their best call is to cease operations and shut down the business until the uncertainty clears.

He went on to claim that they have decided that shutting down is the best solution for them given the current market situation.

They will regain whatever they get from closing the positions and increase their liquidity. Although the firm is not clear, many can understand that it is one of the firms directly affected by the FTX crash.

No New Customers

The firm has also announced that it will no longer be catering to new customers. They have stopped accepting new customers and will ensure that the signing-up option is gotten rid of.

The firm has also issued a notification for the customers advising them to withdraw their funds as soon as possible.

Genesis Block’s website is still active as it is still catering to OTC customers until December 9.