From www.businessinsider.com

  • Gemini, a cryptocurrency platform run by the Winklevoss brothers, halted client withdrawals for its Earn progam.
  • Bloomberg reported Thursday that the Gemini Earn has $700 million in client funds.
  • Genesis Global Capital also halted withdrawals and is the lending partner of Gemini Earn.

LoadingSomething is loading.

Thanks for signing up!

Access your favorite topics in a personalized feed while you’re on the go.

The collapse of Sam Bankman-Fried’s FTX is continuing to send repercussions through the crypto sector, with Genesis Global Capital and Gemini Earn announcing suspensions of customer withdrawals.

Gemini, a cryptocurrency platform run by the Winklevoss brothers, made its announcement Wednesday. Then, on Thursday, Bloomberg reported that the Gemini Earn product has $700 million in customer funds. 

“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,” Gemini said in a blog post Wednesday. “We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible. We will provide more information in the coming days.”

The Gemini Earn program lets users lend their crypto to institutional borrowers.

The company also stated that the decision does not impact any other Gemini products and services, and that all customer funds kept on the Gemini exchange are held 1:1, and available for withdrawal at any time. 

Meanwhile, Genesis Global Capital, which is the crypto-lending arm of Genesis Global Trading, cited “the extreme market dislocation and loss of industry confidence caused by the FTX implosion,” according to CoinDesk.

Genesis Global Trading is capitalized separately and continues to provide full trading and custody services. 

Last week, Genesis revealed that its derivatives unit had $175 million in its FTX trading account, prompting owner Digital Currency Group to provide an equity infusion of $140 million.

The post A Winklevoss-run crypto operation has frozen $700 million in client withdrawals as it becomes ensnared in the FTX disaster first appeared on www.businessinsider.com

New reasons to get excited everyday.

Get the latest tech news delivered right in your mailbox


5 Reasons Why You Should Try Online Horse Race Betting

In many places around the world, horse races are an attraction that a lot of people love to watch. With the fast-paced action and thrill that each game provides, it is no longer surprising to know that millions of fans have grown fond of it.

NordLayer — more than a business VPN

Cybersecurity threats have become vast and more sophisticated. The rate of malware attacks and malicious activity counts within seconds despite the size or sector the organization belongs to — no one is safe enough to expect that foe actors will bypass vital company resources.


You may also like

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

More in Tech News