Thursday, July 25, 2024

Gemini Safeguarded Customers last year by Withdrawing $282M from Genesis for Earn Users’ Fund.

“In August of the previous year, Gemini, the cryptocurrency exchange, clarified that it withdrew $282 million from crypto lender Genesis Global Capital, transferring these funds to its liquidity reserve. This statement was made in response to a New York Post article published on Thursday.”

According to a source quoted by the Post, the article said that Gemini founders Cameron and Tyler Winklevoss withdrew more than $280 million of “their own money, whether that’s corporate funds or their personal funds.”.

Gemini responded on social media site X (formerly known as Twitter), calling the narrative “misleading” and “pure fantasy.”

“Everything the Post alleges in its story is the exact opposite,” the business claimed. The $282 million that was taken out of Genesis in August 2022 actually belonged to Earn members.

In response to events like the collapse of the TerraUSD stablecoin and the market turbulence that occurred throughout the summer of 2022, Gemini said it decided to raise its liquidity reserves.

“As a result of our risk management, Earn users had $282 million less exposure to Genesis when Genesis halted redemptions on November 16, 2022,” Gemini continued.

Following the dramatic collapse of cryptocurrency exchange FTX in November, Genesis, a subsidiary of Digital Currency Group, which is also the parent company of CoinDesk, outlawed user withdrawals and froze the assets of Gemini’s Earn customers. In January 2023, the company filed for bankruptcy.

Gemini asserted earlier this month that the customers of Genesis will not receive “anything close to the real value” of the money they are entitled to as a result of the planned bankruptcy plan.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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