Crypto Market Turmoil: Genesis, Gemini, and Binance Respond

Genesis Capital Suspends Withdrawals Amid Market Turmoil

Genesis Global Capital has temporarily halted redemptions and loan originations, citing the unprecedented market turmoil caused by FTX's collapse. The firm, holding $175 million on FTX, disclosed abnormal withdrawal requests exceeding its liquidity. With $2.8 billion in active loans reported in its third-quarter report, the suspension has raised concerns regarding Genesis and its partners. Crypto exchange Gemini followed suit, pausing withdrawals as Genesis was integral to its Earn project. Despite this, Luno, another partner, assured customers their assets remained safe.

Gemini Records Massive Withdrawals

Gemini has experienced significant outflows, recording $570 million in withdrawals compared to $75 million in inflows within 24 hours. The exchange's digital asset balances dropped from $2.2 billion to $1.7 billion. The pause in Gemini's Earn Program, due to the market dislocation and loss of confidence from the FTX implosion, intensified user fears. However, Gemini reassured customers that their funds are held 1:1 and are accessible.

Binance Eyes Voyager Digital's Assets

Following FTX's bankruptcy, Binance US is preparing to relaunch its bid for Voyager Digital, a crypto lender. FTX's previous $1.4 billion acquisition deal for Voyager was canceled. Voyager is now engaging with various bidders, reigniting Binance's interest. Despite potential complications from Voyager's contractual claim against FTX, Binance's renewed bid has positively impacted Voyager's token, VGX.

Trust Wallet Token Surges Amid Crypto Crisis

Amid the crypto crisis, Trust Wallet Token (TWT) has surged, gaining over 100% in seven days. The collapse of FTX drove users towards decentralized exchanges, boosting Trust Wallet's popularity. TWT reached an all-time high of $2.39 and now ranks as the 46th largest cryptocurrency. Trust Wallet has launched a new browser extension to accommodate increased user demand.

FTX Investors File Lawsuit Against Promoters

FTX's collapse has led to a class-action lawsuit against Sam Bankman-Fried and celebrities who promoted the exchange, like Stephen Curry and Tom Brady. The lawsuit accuses FTX of deceiving unsophisticated investors, claiming over $11 billion in damages. As legal pressures mount, an analysis suggests FTX could refund approximately 50% of users' deposits.