A top Hong Kong crypto firm ends trading after FTX collapse: 'We don't know which counterparties would fail next'

• A top crypto firm in Hong Kong is winding down trading activity, according to Reuters.
• Genesis Block said it would close its over-the-counter trading portal on December 10.

A top Hong Kong cryptocurrency firm will stop over-the-counter trading over concerns of broader market turmoil since the collapse of FTX.

Genesis Block told customers in an email first reported by Reuters that the company's trading portal would close on December 10. Chief executive Wincent Hung told Reuters that the company is concerned "as we don't know which counterparties would fail next, so we would rather close out all our positions to regain some of our liquidity."

The collapse of FTX has reverberated throughout cryptocurrency markets, and has spurred investigations into whether founder Sam Bankman-Fried mishandled client funds. FTX's fall has extended to peers in the industry like BlockFi, which is considering bankruptcy and layoffs amid the turmoil.

Genesis Block once was responsible for the largest network of bitcoin ATMs, and is now asking its customers to withdraw funds as soon as possible. The ATMs are now owned and operated by CoinHero, with plans to expand further into Hong Kong after Genesis Block sold that arm of its business last year.