Gemini cryptocurrency exchange may partially stop cryptocurrency withdrawals

Cryptocurrency exchange Gemini warns its customers about possible delays in withdrawing funds from the Earn project due to the suspension of the Genesis lending platform. Problems with withdrawals and servicing of Genesis' current obligations arose immediately after the collapse of the FTX cryptocurrency exchange. According to the company, Gemini’s lending partner under the Earn program, Genesis Global Capital, has suspended withdrawals and is unable to fulfill its obligations to customers.

The Earn product, which is serviced by Genesis, allows users to earn a percentage return on deposited crypto assets. The exchange says it is in close communication with the Genesis team to help customers withdraw funds from the Earn program as soon as possible, and promises to provide additional information in the coming days.

The Gemini team has already stated that it is disappointed with the breach of the Earn program support agreement, but this event «will not affect other products and services of the crypto exchange.» As of the end of the third quarter of 2022, Genesis Global Capital, the lending arm of crypto investment bank Genesis Global Trading, serves an institutional client base with a total loan portfolio of over $ 2.8 billion.

Last week, Genesis reported that its derivatives division had lost access to about $ 175 million in locked funds in a trading account with FTX. The panic caused by the sharp drop in the FTX exchange triggered a massive request among Genesis clients to withdraw their assets.

This is not the first time that other crypto companies have experienced problems and losses after the collapse of Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried 's exchange. After the recent suspension of all operations with digital assets, the AAX cryptocurrency exchange published a statement that it may resume its operations in the future. According to the exchange’s employees, this will happen in case of raising additional capital.