Is Gemini Trying to Recover $900 Million?
The collapse of the FTX exchange is felt across the crypto community. Neither the Gemini exchange nor the crypto lender Genesis is an exception, with the former trying to recover $900 million that Genesis allegedly owes to Gemini’s clients.
The British newspaper The Financial Times has worrisome news for the crypto community.
According to the newspaper, the Gemini exchange, owned by the Winklevoss twins, is trying to recover a stupendous sum of $900 million from the crypto lender Genesis, owned by its parent company the Digital Currency Group.
Citing sources familiar with the matter, The Financial Times says that the Gemini exchange is in trouble due to its initiative called Gemini Earn, which it operates together with Genesis.
Launched in 2021 in the United States, Gemini Earn offers earning 8% in interest by lending out crypto, including Bitcoin and stablecoins.
On Nov. 16, Genesis said that it temporarily suspended withdrawals due to unstable market conditions, referring primarily to the collapse of the FTX cryptocurrency exchange. It also disclosed that it had around 175 million worth of funds held in an FTX trading account.
On the same day, Gemini Earn also started experiencing issues with deposits.
We are aware that Genesis Global Capital, LLC (Genesis) — the lending partner of the Earn program — has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days. We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible,
the announcement by Gemini read.
The Gemini Earn service remains unavailable at the time of writing.
To make sure that the community does not go gaga about the latest bad crypto news, on Nov. 29, the Gemini exchange unveiled its Trust Center, which is a dashboard showing metrics for funds held by Gemini and on its behalf.
According to the exchange, The Gemini Trust Center is building trust through transparency by providing daily updates on important metrics including total crypto and fiat on our platform, fiat and crypto net flows, and GUSD in circulation.
Source: Gemini’s Twitter
Previously The Coinomist reported that Gemini offers staking to users in Hong Kong, Singapore, and the US.
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