Cryptocurrency exchange Genesis, which has jammed large amounts of funds in FTX, announced on November 16 that it is suspending withdrawals. Now, Gemini, one of the exchanges it cooperates, carries a large amount of Bitcoin.
25,000 Bitcoins were released from Genesis, which stopped withdrawals
cryptocoin.comAs you follow, Genesis suspended withdrawals on November 16, citing the bankruptcy of FTX. Shortly after that, Gemini, one of its collaborating exchanges, announced that it was discontinuing the Earn program. Now, Dylan LeClair, one of the researchers who closely followed the incident, reports that 25,000 Bitcoins have been moved from Gemini wallets in the last 24 hours. That’s roughly half a billion dollars worth of transfers. In other words, Gemini transferred 13% of all Bitcoin in its wallet. Due to the size of the fund, the transactions attracted attention in a short time.
Dylan LeClair of Twitter suggests that something is looping in the background, citing Glassnode data. He wrote the following on his Twitter account recently:
25 thousand BTC was withdrawn from Gemini in the last 24 hours. Investors are spooked after the Earn program halted withdrawals as Genesis (temporarily?) shut its doors. This transfer follows yesterday’s decision to suspend withdrawals.
Comments on the status of Genesis
Digital Currency Group (DCG) made a statement regarding the situation of Genesis after the events. According to the official Twitter account, the decision to stop the withdrawal comes as a result of “extreme market conditions and loss of confidence caused by the FTX bankruptcy.”
Additionally, they said any echo is limited to Genesis Lending only. They stated that this business will have no impact on the trading or custody services it provides. DCG assures readers that this situation is only temporary. It hopes that it will not have any impact on DCG or any of its subsidiaries.
Investors uneasy about new bankruptcies after FTX
Researcher Dylan LeClair mentioned that investors were warned after Gemini Earn paused withdrawals. Then he said that Gemini did the same. Gemini keeps telling everyone that the Earn program doesn’t use the platform’s custody service. The exchange has always emphasized that the Earn program does not use the platform’s custody service. LeClair does not expect Gemini to experience financial difficulties. He claims that despite the stance and reputation of the exchanges, people did not trust them as a result of the collapse of FTX, and now he is doing so.
Bitcoin and altcoin market moves to 2022 bottoms with FTX bankruptcy
The fiasco involving Sam Bankman-Fried’s crypto empire triggered the decline that wiped out nearly $183 billion from its total market cap.
Sam Bankman-Fried’s total market cap fell below $800 billion this month as a result of the FTX exchange crash, according to data from TradingView. This was a level not seen since early 2021.
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