Cryptocurrency exchange Gemini today warned its customers that there may be delays in withdrawals on its Earn product.
Cryptocurrency Exchange Gemini Affected After Genesis Stops Withdrawals
The delays are due to Genesis Global Capital’s announcement today that it will stop withdrawals on its lending platform.
Genesis serves the crypto exchange’s Earn product, which allows users to earn interest in exchange for depositing their idle cryptocurrencies.
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 his statement on the subject:
“We are aware that Genesis Global Capital LLC (Genesis), the lending partner of the Earn program, is pausing withdrawals and is unable to meet customer repayments within a 5-business-day service level agreement (SLA).”
The announcement also stated that the crypto exchange is working to recover user funds from the Earn program “as soon as possible”. Gemini said this move “does not affect other Gemini products and services.”
Gemini continued his statements on Twitter as follows:
“We are disappointed that the Earn program SLA will not be met, 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.
This does not affect other Gemini products and services. Gemini is a fully-reserved exchange and custody institution. All client funds held on the Gemini exchange are held 1:1 and can be withdrawn at any time.”
Allegedly Opened Short Position For GUSD Token Two Hours Before The News
However, hours before the Gemini and Genesis news broke, an account had a Gemini exchange linked GUSD altcoin It was noteworthy that he opened a short position of 5 million dollars.
Someone is shorting GUSD because….check notes… Gemini Earn…? pic.twitter.com/06FNROkrGG
— Steven (@Dogetoshi) November 16, 2022
*Not investment advice.
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