- British startup B2C2 was founded in 2015 by Boonen, a former trader at Goldman Sachs.
- Last Thursday, Genesis said it has $175 million in exposure to the collapsed exchange.
After Genesis, a troubled crypto lending service halted client withdrawals on Wednesday, prominent cryptocurrency market maker B2C2 decided to help. Max Boonen, the founder of B2C2, tweeted minutes after the trading firm’s statement, “B2C2Group wishes to extend an offer to purchase loans from Genesis Trading’s book to alleviate the current liquidity shortfall.” British startup B2C2 was founded in 2015 by Boonen, a former trader at Goldman Sachs.
A prominent crypto lending company, Genesis, has also seen the ripple effects of FTX’s bankruptcy. After the trading desk stopped making new loans, Gemini Earn’s redemptions slowed since Genesis was the lending partner.
$175M Exposure to FTX
Last Friday, when FTX and Alameda Research filed for bankruptcy, the parent firm of Genesis, Digital Currency Group, stepped in to offer $140 million in equity. Last Thursday, Genesis said it has $175 million in exposure to the collapsed exchange.
However, due to the volatility of FTX at the time, retail crypto lender BlockFi froze client withdrawals. The corporation is now considering whether or not to file for bankruptcy.
On Tuesday, cryptocurrency exchange Sino disclosed “mid-seven figures” of exposure to FTX, while on the same day, cryptocurrency hedge fund Ikigai admitted to losing the “large majority” of its money inside FTX.
Furthermore, there have been rumblings that CZ is collecting information in preparation for a possible offer for Genesis’ loan assets, and he has reportedly started reaching out to get more information on the company’s financial health. Moreover, Genesis reported $2.8 billion in outstanding loans in its third quarter of 2022 financial report.
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