Coinhouse suspends "savings accounts" due to Genesis suspension due to FTX collapse
Australian Securities Exchange scraps its $167 million, seven-year-long blockchain project
ASX will write off the AU$245–$255 million (US$164–$170M) they have poured into the project, and start again on designing a replacement for the CHESS system.
- "ASX kills its blockchain project, will write off $250 million", Financial Review
Class action lawsuit filed against celebrities who promoted FTX
The suit alleges that the celebrities violated the anti-touting provisions of securities laws by failing to disclose the nature, scope, and amount they were compensated to promote the platform.
Nigerian startup Nestcoin has nearly all funds locked in FTX, announces layoffs
Nestcoin had nearly all of the funds remaining from their $6.45 million funding round locked in FTX — approximately $4 million.
Gemini halts withdrawals from their lending service
The company said in a blog post that they were "working with the Genesis team" to restore withdrawals. Like Genesis, they tried to urge that the issue would not affect other Gemini products. However, a service outage that same day did little to strengthen trust in the company.
Genesis crypto lending service halts withdrawals
They urged in their announcement that the decision would not impact their trading or custody businesses — though if I was a user of their other services I might not be feeling so reassured given crypto companies' poor track record of segregating operations.
Genesis has about $2.8 billion in total active loans as of the end of September 2022.
This is not the first crisis for Genesis this year. The firm lost hundreds of millions due to exposure to the Three Arrows Capital collapse, and in August announced layoffs of 20% of their employees.
Coachella NFTs stop working due to FTX collapse
Ten of the NFTs in the collection came with lifetime passes to Coachella, and sold for six figures. Each year, the NFT holder has to go through the redemption process to obtain their festival pass.
Many of the token owners bought their NFTs with FTX and simply left them in their accounts on the platform. Some were able to transfer their tokens before FTX's NFT platform stopped operating, but many did not.
Australian crypto exchange Digital Surge suspends withdrawals
- "Aust crypto exchange suspends withdrawals", Shepparton News
BlockFi plans layoffs, possible bankruptcy after FTX collapse
Now, the Wall Street Journal reports that BlockFi has been considering layoffs, and has been in talks with bankruptcy attorneys about a possible Chapter 11 filing.
Although BlockFi disputed reports that they had been custodying client assets at FTX, they acknowledged that they had "significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US".
- "BlockFi Prepares for Potential Bankruptcy as Crypto Contagion Spreads", The Wall Street Journal