Bitcoin declines on spreading FTX crisis

Betcoin was high trading at $16705 after falling to intraday lows after Wednesday’s Wall Street opening bell as the FTX scandal appeared to have impacted another victim. After the bell BTC/USD was trading around $16,400.

The meant victim could be Genesis Global Capital, the crypto lending arm of Genesis Trading, and so, withdrawals have been paused over liquidity issues.

The Digital Currency Group (DCG), the parent company that counts Genesis Trading among its subsidiaries, directly attributed the decision to the FTX disaster.

FTX’s collapse not only left employees extremely angry, but the company also has more than one million creditors, rather than its initially stated 100,000, according to information in bankruptcy filing.

The past week’s shocking events no doubt impacted several portfolios but also their trust in crypto, and in some, their good judgment thus producing anxiety that could be as unprecedented as the FTX debacle itself.

“Today Genesis Global Capital, Genesis Trading’s lending business, made the difficult decision to temporarily suspend redemptions and new loan originations,” the company tweeted.