FTX Market Retort Reportedly Pushed Genesis Block to Ceasing Hong Kong Operations

Hong Kong-based cryptocurrency exchange says market turmoil from FTX fallout is the end cause of the cessation of operations after a year of closure of services.

Following the recent FTX scandal, another crypto firm is feeling its effects in the market. Genesis Block, a leading provider of cryptocurrency retail services in Hong Kong, has announced that it will cease trading and close its doors, according to reports.

According to an email sent to its clients by the Compliance Department, the company announced that from December 10, it will be closing its online OTC trading portal.

Wincent Hung, CEO of the company, told Reuters that the company has gone out of business as counterparties continue to shut down in light of the FTX fallout, and no one can say who will be next.

"We therefore prefer to close all our positions to regain some of our liquidity."

The company's website is still active, and there are even help messages for customers interested in OTC trading. However, according to the email, the company is asking its customers to withdraw their remaining funds and is no longer accepting new customers.

Genesis Block is not affiliated with the separate crypto firm Genesis, which provides institutional cryptocurrency trading services. That Genesis was also affected by the FTX fallout, tweeting that $175 million of its funds are locked up in the defunct exchange.

Sources close to the company said Genesis Block began cutting services earlier this year and severed ties with FTX ahead of the fallout. Additionally, the company used t...