“The past week has been an incredibly challenging and stressful time for our industry,” Gemini said in his official blog post.
Cryptocurrency exchange Gemini has paused withdrawals on the “Earn” program due to its collaboration with lending platform Genesis. The exchange, which cannot afford refunds at the moment, has issued a warning to its users that there may be delays.
Genesis Trading, a subsidiary of Digital Currency Group (DCG), reportedly held a meeting with its clients this morning (16.11.2022). Genesis is the largest lending company in the crypto-asset ecosystem. But they have big losses in 3AC and FTX.
Before this news was reflected in the press, investment firm Genesis Global Trading had announced that the cryptocurrency lending platform Genesis Global Capital had paused withdrawals.
“Last week has been an incredibly challenging and stressful time for our industry,” Gemini said in her official blog post.
“We are aware that due to the Earn program lender partner Genesis Global Capital, LLC (Genesis) pausing withdrawals, it will not be able to meet customer repayments under the 5-business day service level agreement (SLA). We are disappointed that the service level agreement (SLA) of the Earn program will not be met. But we are encouraged by the commitment of Genesis and its parent company, Digital Currency Group (DCG), to do everything they can to meet their obligations to customers under the Earn program. We will continue. We will continue to work with them on behalf of all Earn customers. This is our highest priority. Thank you very much for your patience.”
Gemini also emphasized that its other programs and services were not affected, and that they continued as a full-reserve exchange and custodian.