Crypto Lender Genesis Had Sought Emergency Loan of $1 Billion From Investors

"Genesis had been exploring all possible options amidst the liquidity crunch resulting from the FTX news," the company said in an emailed statement to Reuters, adding that it took the decision to suspend redemptions after reviewing a number of options.

The implosion of FTX has rippled across the industry, hobbling liquidity at firms with exposure to what was once one of the world's biggest crypto exchanges, and prompting investigations by regulators in several countries.

Last week, FTX filed for U.S. bankruptcy protection and its founder Sam Bankman-Fried resigned as chief executive, after rival exchange Binance walked away from a proposed acquisition.