As the Genesis protocol faced a major financial crisis, it had no choice but to halt the withdrawal option for the users. The option still remains inaccessible for the users and people are getting impatient.
Gemini, which was among the major creditors of Genesis is also after the platform. The firm is now among the committee of creditors who are after Genesis to regain their funds from the platform.
Gemini has recently shared a report as to how much Genesis owes to their platform and the amount is alarmingly high.
Ever since the FTX crash has taken place, the service offered by Gemini, Gemini Earn has been facing a lot of financial issues. Therefore, the firm is now seeking recovery of its funds from Genesis.
It wants to deal with the investors as soon as possible and before it can do that, it needs funds from Gemini.
The FTX crash has worked like a contagion and it has also gotten to Gemini. The firm has revealed that it owes plenty of funds to its users at Gemini Earn and the users are growing impatient.
Therefore, it needs the funds from Genesis so it can expedite the process of paying out the users as soon as possible.
Gemini Halted Withdrawals on Nov. 16
Things started to look shaky for Gemini as the FTX exchange announced that it had filed for Chapter 11 bankruptcy on November 12.
Gemini is one of the largest cryptocurrency exchanges and it was founded back in 2015 by the Winklevoss twins. The names of the exchange’s co-founders are Tyler and Cameron Winklevoss (twins).
After the FTX incident, Gemini officials announced on November 16 that they had halted the withdrawal option for the users.
Even at the moment, the withdrawal option is paused for the users of Gemini Earn, which is extremely excruciating. The users are not happy at all and they are seeking clarity on the matter.
Turns out, the firm has failed to provide any at the moment, which is even more concerning for the users. Even now, the exchange is sticking with the “market being in turmoil” statement to explain its actions.
The users want to know when the exchange and its withdrawals option will be reinstated so they can withdraw their funds. But the entire community is in the dark at present.
At present, the users are neither able to carry out any redemptions nor they are able to request any loans from the platforms.
Claim from Unknown Sources
While the Gemini platform is trying to hide full details from its users, an unknown source has made an alarming revelation.
The source has claimed that Digital Currency Group (DCG), the parent company of Genesis, a major embattle crypto broker owes Gemini $900 million.
The Geminin Earn service offered by the exchange was offered in partnership with Genesis. Through the platform, the investors were able to generate high yields, one of the best services offered by Gemini.
Now, the exchange has $900 million worth of funds belonging to its users, stuck at Genesis and it wants them out of there.
Gemini has Sought Assistance
The source has claimed that Gemini is currently in talks with Moelis & Co, an investment bank, trying to figure out the entire situation.
It wants help retrieving the funds from Genesis and there is a possibility that it is getting ready to file a lawsuit against the broker.
Genesis’s Exposure to FTX
There are claims that the minimum exposure the broker had at the FTX exchange was worth $175 million. The platform had kept the funds on the exchange through its derivatives trading business.
While things are still unclear between Genesis and Gemini, the exchange by the twins continues to operate its other businesses.
The platform is still running its staking, credit card, and exchange platforms for users.