Genesis Is Caught in FTX’s Fallout. Billions Are Riding on the Outcome.

With the collapse of Sam Bankman-Fried’s FTX empire, the crypto industry lost a major exchange, lender, and institutional trader. Another big industry player,


Genesis


Global, has been caught in the fallout, and it remains unclear when it will resume some operations, especially if it is forced to return money it was paid by FTX and its affiliates.

A subsidiary of Digital Currency Group, Genesis is a critical crypto infrastructure company and liquidity provider. It calls itself a “leading lending desk in the cryptocurrency markets,” acting as a counterparty for institutions worldwide. Its trading desk handles billions in digital-asset transactions weekly, the firm says, and it is involved in derivatives from plain-vanilla options to complex straddles, strangles, and collars.