The French PSAN Mint continue to inform her regularly customers of the passbooks for cryptocurrency since them to freeze. However, the company cannot deliver Guarantee on the recovery of funds.
November 16 Mint announced the freezing of its cryptobooks. These products, for which the company acts as an intermediary, allow users to invest BTC, ETH and USDT as in a savings account, earning interest.
However, the bankruptcy of FTX has had a serious impact on the market and some of the “counterparties” of the booklets, including in particular Genesis. The consequences are immediate for Coinhouse since the funds of its clients are blocked for an indefinite period of time.
A liquidity crisis, not a solvency crisis
If the French company and its leaders remain discreet in the press since the booklet freeze, on the other hand, they continue to maintain a dialogue with the customers concerned. According to information from Munten.nlso Coinhouse joined them phone.
The goal was to provide accurate information about the situation and answer their questions. In addition to this direct communication through customer advisors and employees, the PSAN regularly sends emails to its user base.
The last e-mail message is dated Monday 28 November. Coinhouse summarizes the situation there, following “a default of certain counterparties” of the crypto books. The tone is intended to be reassuring, even though the company must acknowledge that it only has the information that these counterparties have provided themselves.
A global and unprecedented crisis
We trade with these counterparties on a daily basis. All are telling us at this stage that it is indeed a liquidity problem and not a solvency problem, especially Genesis. Indeed, the crypto market is currently experiencing an unprecedented liquidity crisis worldwide.”
However, “ the interdependence of key players also evokes fear of a infection and rising bankruptcies. BlockFi, which was bailed out by FTX, has just been declared bankrupt. In the worst case, a cessation of activity due to Genesislooking for capital to restructure could sign the disappearance of funds from Coinhouse clients.
Genesis claims not to be suffering from a solvency crisis and communicates about the work undertaken internally to unblock the situation. The company has thus indicated that it has appealed to investment bank Moelis & Co to help it manage this liquidity crisis,” the PSAN replies, however.
Genesis has loaned $575 million to parent company DCG
However, how can we guarantee that there is only one liquidity crisis is at issue? Coinhouse clarifies on this point that Genesis is a Loan of $575 million with its parent company DCG.
The repayment of this loan would, in principle, allow the US company to reopen its services and thus authorize Coinhouse to restore access to the capital invested in the passbooks. Except that the loan matures in May 2023. As a result, Genesis finds itself caught between its customers and DCG. A resolution is therefore not a matter of “a few days”.
As a player registered with the Autorité des Marchés Financiers, the largest French player in this market, with a team of 120 people, we use all our weight and legitimacy with counterparties to try to find a positive solution and propose solutions,” concludes Coinhouse.