What the FTX collapse means for crypto market liquidity

CNBC’s Kate Rooney joins ’Squawk on the Street’ to discuss the latest news around the FTX fallout, highlighting remarks by FTX lenders, and tweets from Sam Bankman-Fried. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

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The latest Fallout from FTX this morning We’re getting some news from one of the Biggest lenders in the space Genesis Saying that it’s now pausing new loan Originations and redemptions in a Statement Genesis saying that spot and Derivatives trading and its custody Business do remain operational and then With regards to lending they say their Number one priority is to serve clients And preserve their assets they have Taken what they call the difficult Decision to temporarily suspend Redemptions and new loan originations in That lending side of the business and Guys this is a major player in the space According to their website they’ve got About 2.8 billion dollars in total Active loans and Genesis is also a major Source of liquidity in this market it Comes as another big lender block five Pause withdrawals in the past week or so Due to its exposure to FTX The Wall Street Journal reporting that it’s Heading for bankruptcy no comment on That from block five but all of this Could certainly have a price impact at Least on bitcoin analysts have been Worried about what it means for Market Liquidity Sam bankman Freed’s Alameda Research is closing as we know FTX filed Through bankruptcy and Alameda was one Of the biggest market makers in this Space in addition to Genesis we have

Already seen a significant drop in Bitcoin Market depth across exchanges That are markets guys tend to mean more Volatility if these markets can’t absorb Some of the larger orders and trades Without significantly impacting prices And Bitcoin prices are down slightly Today as well also hearing from now Former FTX CEO Sam bankman freed in a Series of tweets overnight he says his Goal was to make customers whole he says Maybe I’ll fail I’ve failed before but All I can do is try and then he also Tweeted out some financials of course a Lot of caveats here says the company has About nine billion dollars of liquid Assets questions about what that means Mark to Market considering where prices Have gone in the past month or so back To you He continues to be unaware I think that He’s potentially criminally uh in big Trouble doesn’t he I mean I just can’t I Keep coming back to his willingness to Communicate Uh it’s just one of so many different Parts of this cape we’re getting this Tweet threat David that it was a slow Trickle of information and uh some of This I mean this is real financial Information that he’s at least Presenting it that way and so you wonder What the legal implications are you Wonder why he’s allowed to comment in

This in this way and uh yeah we have Heard from him consistently so it’s Interesting that that is sort of our Direct line to to what he’s thinking on All of this and he also has said the Journal is reported but we’ve also Confirmed with the source that he is Indeed looking to raise money still at This point so bankruptcy is imminent He’s dealing with it right now we’re Getting some of the filings uh in the Past week or so but he is still looking For that Hail Mary option of trying to Raise more money that he has framed as a Way to protect customer assets but a lot Of new tweets coming out every hour or So


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