By Tom Wilson
LONDON (Reuters) – U.S. cryptocurrency trader Genesis Trading said on Wednesday its balance sheet was strong and its lending business continued to meet customer demand, days after rival lender Celsius Network sparked a sell-off. of crypto by freezing customer withdrawals.
“Despite high market volatility, all business operations continue to run as normal at Genesis,” he said in a tweet. “We have strong risk management practices and frameworks and remain committed to supporting our clients in all market conditions.”
Crypto lenders such as New Jersey-based Celsius offer high interest rates to customers who deposit digital coins on their platforms. They then lend cryptocurrencies to earn a return.
Celsius said on Monday it was freezing withdrawals and transfers citing “extreme” market conditions, sparking the latest crash in crypto markets and prompting warnings from the top US securities regulator about returns ” too good to be true”.
Bitcoin fell 7.8% to $20,289 on Wednesday, its lowest level since December 2020. It has lost about 28% since Friday and more than half its value this year.
(Reporting by Tom Wilson, editing by Sinead Cruise)