On November 16, 2022, Genesis Global Capital, the crypto lending division of the Digital Currency Group venture capital enterprise, reacting to the collapse of FTX, temporarily stopped honouring redemptions and initiating new loans.
In another development, there have been rumours or fears from the general public that Luno Africa will be affected by the update from the crypto lending firm.
However, Marius Reitz, the general manager of the cryptocurrency exchange Luno Africa, claims that business is continuing as usual and that Genesis Capital’s decision to halt “redemptions and new loan originations” has had no impact on his organization.
Reitz added that there haven’t been “any significant changes in deposits, withdrawals, or trading volumes” at the exchange owned by Digital Currency Group (DCG).
Genesis had reportedly halted customer withdrawals “in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.”
Following the announcement from Genesis, a lending partner for Luno’s savings wallet, rumours began circulating that the cryptocurrency exchange might suspend withdrawals.
Luno, which was acquired by DCG in 2020, initially issued a statement on November 16 to reassure worried customers that it had taken steps to ensure access to funds in the savings wallet would be retained “in the event withdrawals from Genesis are not possible.”
Luno is working hard to dispel rumours of withdrawal suspensions. However, persistent reports that Genesis is struggling to close a $1 billion accounting gap have fueled bankruptcy speculation.
Genesis has since denied considering bankruptcy, but the persistent rumours have reportedly prompted Luno’s general manager to refute claims that withdrawals will be frozen. In his most recent comments on the subject, Reitz reportedly stated:
“There has been no change to Luno’s status as a wholly owned, independent operating subsidiary of DCG. Customers and business operations at Luno were unaffected during this time.”
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
