Genesis, which is owned by DCG, has put a stop to the redemptions and new loans made by its lending unit.
The current CEO of Genesis Global Trading, Derar Islim, was quoted by Coindesk writer Nelson Wang on November 16, 2022 as explaining that the company's loan section had suspended withdrawals. This information was published on November 16, 2022. The Chief Executive Officer of Genesis Global Trading, which is owned by Digital Currency Group (DCG), provided further clarification that the decision will solely have an impact on the lending side of the business. Wang was informed by Amanda Cowie, the vice president of communications and marketing at DCG, that the decision was challenging.

"Today, Genesis Global Capital, the lending company of Genesis, made the painful decision to temporarily cease redemptions as well as new loan originations. According to the study, Cowie is reported as claiming that this decision was made in response to the acute market dislocation and loss of industry confidence induced by the FTX implosion. The representative for the DCG also said:

This ruling will have an effect on Genesis's loan business, but it will not have any influence on the company's trading or custody activities. It is important to note that the business activities of DCG and our other wholly-owned subsidiaries will not be affected in any way by this decision.

According to the consensus of the community, Genesis has been negatively affected by the failure of Terra, Three Arrows Capital, and the aftermath from the FTX exchange. Following in the footsteps of Blockfi, Liquid Global, and Salt Lending, which all halted withdrawals following the failure of FTX, the lending unit made the decision to temporarily discontinue certain operations for the time being.

When the dust settled after UST's depegging event and LUNA's fall to zero, a number of organizations were wiped out, including Celsius and Voyager Digital, both of which were big corporations. In a similar vein, a number of businesses were wiped out by the collapse of Terra.