One of the largest Bitcoin exchanges in the market participated in the decision to suspend transactions in the last days. After the FTX bankruptcy, many of the companies he was affiliated with are in trouble.
Giant Bitcoin exchange halts operations after FTX’s bankruptcy
Gemini, the cryptocurrency exchange founded by the Winklevoss brothers, Facebook inventors, announced that it is pausing withdrawals on the Earn (earning) program. Gemini said it’s working with Genesis to help customers use their money from the program “as quickly as possible.” There is currently no clear information on when withdrawals can resume.
Gemini’s decision is based on Genesis’ announcement on November 16. As Kriptokoin.com, we have transferred the details in this article. Shortly after the news, Gemini announced that there would be withdrawal delays for Earn product, of which Genesis is a credit partner. The exchange allows Earn users to earn profits by staking their cryptocurrency deposits for an annual return.
1/6 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. https://t.co/9e48pF3Ymn
— Gemini (@Gemini) November 16, 2022
Gemini said in a statement on his official Twitter account:
…The past week has been an incredibly challenging and stressful time for our industry. We are disappointed that the Earn program will not cover HotDollars (HDS) payments, but we are encouraged by Genesis and Digital Currency Group’s commitment to do everything they can to meet their obligations to customers under the Earn program.
Genesis stopped withdrawals earlier today
The Bitcoin platform has suspended withdrawals today, citing “abnormal withdrawal requests.” He blamed the market crisis caused by the FTX bankruptcy, saying it exacerbated the liquidity crisis that began when Three Arrows Capital defaulted. Launched in February 2021, Gemini Earn is a program that allows users to lend their crypto to institutional borrowers and earn interest. Gemini has partnered with third-party borrowers, including Genesis, to facilitate the service.
The Bitcoin exchange says that none of its other products and services are affected by Genesis. Gemini stated that it remains a full reserve exchange and custodian. He added that all client funds are held in a 1:1 ratio and are ready to be withdrawn at any time.
6/6 This does not impact any other Gemini products and services. Gemini is a full-reserve exchange and custodian. All customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time. You can read more here: https://t.co/jZz7AvmORG
— Gemini (@Gemini) November 16, 2022
Earlier this week, one of the biggest FTX investors, BlockFi, suspended withdrawals. According to his statements, his platform is preparing to file for bankruptcy. With Genesis also stopping withdrawals, other exchanges are at risk. Former FTX CEO Bankman-Fried also said he wanted to ‘increase liquidity’ in his new tweets.
According to new data, FTX currently has more than 1 million creditors. The stock market said it has more than 100,000 creditors in its bankruptcy filing last week. The application, which was updated today, revealed that the number of creditors is more than 1 million.
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