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

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.

Breaking: Gemini Earn halts withdrawals due to ‘market turmoil’ caused by FTX fallout

Cover art/illustration via CryptoSlate

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.

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 Genesisโ€™ and its parent company Digital Currency Groupโ€™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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