Breaking: Gemini Earn halts withdrawals due to ‘market turmoil’ caused by FTX fallout Breaking: Gemini Earn halts withdrawals due to ‘market turmoil’ caused by FTX fallout
Gemini said it is working with Genesis to help customers redeem their funds from the Earn program "as quickly as possible" but did not specify when withdrawals might resume.
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Updated: Nov. 16, 2022 at 2:58 pm UTC
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Gemini, a cryptocurrency exchange based in the U.S., said that it has paused withdrawals on its Earn program.
Genesis Global, the lending partner of the Earn program, is no longer able to meet customer redemptions as mandated in its service-level agreement (SLA).
The exchange said it was working with the Genesis team to help its customers redeem their funds “as quickly as possible” but provided no timeline as to when that might happen. More information will be provided in the coming days.
2/6 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.
— Gemini (@Gemini) November 16, 2022
Genesis halted its own withdrawals and redemptions earlier today, saying “abnormal withdrawal requests” have exceeded the company’s current liquidity. The borrower blamed the market turmoil caused by the FTX fallout, saying it further exacerbated the liquidity crisis that began when Three Arrows Capital defaulted.
Launched in February 2021, Gemini Earn is a program that enables users to lend their crypto to institutional borrowers and earn interest. Gemini partnered with third-party borrowers, including Genesis, to facilitate the service. At the time, the company said all third-party borrowers were vetted through a risk management framework that reviews the partners’ collateralized management process.
“The past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the Earn program SLA will not be met, but we are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program,” Genesis said in an announcement.
The exchange noted that none of its other products and services were impacted by Genesis. Gemini said that it remained a full reserve exchange and custodian, adding that all customer funds are held 1:1 and are available for withdrawal at any time.
Article updated 14:50 GMT to add details.
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Genesis Group
Genesis Group provides cloud based information technology services to businesses and end users for a range of applications including video rendering, AI, and blockchain development applications.
Digital Currency Group
Digital Currency Group’s mission is to accelerate the development of a better financial system.
