LONDON - U.S. cryptocurrency dealer Genesis Trading said on Wednesday its balance sheet is strong and its lending business continues to meet client demand, days after rival lender Celsius Network sparked a crypto sell-off by freezing client withdrawals.
"Despite elevated market volatility, all business operations continue to function normally at Genesis," it said in a tweet. "We have strong risk management practices and frameworks and remain committed to supporting our clients through all market conditions."
Crypto lenders such as New Jersey-based Celsius offer high rates of interest to customers who deposit digital coins at their platforms. They then lend out cryptocurrencies to earn a return.
Celsius said on Monday it was freezing withdrawals and transfers citing "extreme" market conditions, spurring the latest meltdown in crypto markets and prompting warnings from the top U.S. securities regulator over "too good to be true" returns.
Bitcoin tumbled on Wednesday as much as 7.8% to $20,289, its lowest since December 2020. It has lost around 28% since Friday and more than half of its value this year.
(Reporting by Tom Wilson, editing by Sinead Cruise)