The cryptocurrency exchange Luno, part of the Digital Currency Group (DGC), continues to operate at full capacity despite the liquidity crisis at the sister OTC platform Genesis Global Capital. This was stated to news24.com by its managing director Marius Reitz.
According to the top executive, Luno clients still have access to funds in the savings wallet. No substantial changes to deposits, withdrawals or trading volumes were observed on the exchange.
“Luno remains a wholly independent operating subsidiary of DCG, and this arrangement has not changed. Clients and operations were not affected during this period.”, — he added.
In addition to Genesis Global Capital, DCG also comprises the management company Grayscale Investments mining company Foundry and the CoinDesk publication. Luno became part of the holding in September 2020.
On November 9, 2022, the platform published its quarterly transparency report, which includes a Proof-of-Reserve. It described steps taken to ensure access to funds in the savings wallet “in light of Genesis’ problems.”
Last week we published this blog, which explains our responsible and transparent approach to running our business, including details of our quarterly proof of reserves audit. https://t.co/XWDfVM4AYz
— Marcus (@marcswane) November 16, 2022
On November 16, Genesis Global Capital suspended crypto-lending operations, raising concerns about the stability of the entire DCG group.
On November 18, it emerged that the platform failed to raise $1 billion in emergency financing by the morning of November 14.
On November 22, Binance declined to rescue Genesis Global Capital.
On November 24, the platform hired investment bank Moelis & Company to study options, including bankruptcy, according to reports.
According to Messari founder and CEO Ryan Selkis, Genesis would need to raise at least $500 million in financing to avert bankruptcy. He projected that some creditors would convert their claims into preferred shares or new DCG debt, as well as warrants.
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