(Bloomberg) -- Crypto brokerage Genesis will get a $140 million equity infusion from its parent company, the Digital Currency Group, after it disclosed its derivatives business has $175 million in funds locked in a FTX trading account. 

The capital infusion will be used to strengthen Genesis’s balance sheet, according to a note sent to a counterparty, confirmed by a spokesperson for DCG. The Block first reported on the note. 

The bankruptcy of Sam Bankman-Fried’s FTX empire has roiled the crypto sector and left investors on edge about the risk of contagion. Genesis said Thursday in a Twitter thread that “our operating capital and net positions in FTX are not material to our business. Circumstances surrounding FTX have not impeded the full functioning of our trading franchise.”

Genesis: Derivatives Business Has About $175m on FTX Platform

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