Hong Kong-based crypto services company Genesis Block said on Friday that it would halt over-the-counter (OTC) trading services due to the risk of infection from the now-bankrupt FTX exchange. The information was published by Reuters.
Genesis Block Trading is not affiliated with Genesis Global Capital, which is owned by Digital Currency Group (DCG).
“We stopped trading because we don’t know which counterparties will go bankrupt next, so we preferred to close all our positions to regain some of our liquidity,” Genesis Block CEO Wincent Hong told Reuters.
OTC trading, also known as over-the-counter trading, is conducted directly between two parties without the oversight of an exchange.
Genesis Block also required users to withdraw their funds and said it would not accept new customers. The company was once one of the largest Bitcoin (BTC) ATM operators in Asia.
One of the Genesis Block employees was a director at FTX Hong Kong but resigned this month. FTX Hong Kong was one of about 130 FTX affiliates that filed for bankruptcy last week.
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