Contagion continues to occur at a rapid pace within the crypto sector. After FTX filed for bankruptcy last week, Genesis Global Trading this morning announced that it would be halting redemptions and withdrawals on its lending products. The company reportedly has $175 million tied up in accounts at FTX.
And with the halt on redemptions at Genesis’ lending arm, further contagion is continuing to be felt in the space. Gemini this morning revealed that Gemini Earn, a yield product offered to customers, functioned in partnership with Genesis’ lending arm.
READ: Genesis Lending Arm Halts Withdrawals Following FTX Bankruptcy
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Commenting on this, Gemini stated that they “are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible.” Indirectly, it appears that this means the Earn program offered by Gemini is now defunct.
The company continued that they “are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program. We will continue to work with them on behalf of all Earn customers.” The company continued by saying that meeting obligations was their highest priority.
The difficulties with the Earn program however are not said to impact other products and services offered by Gemini. The company affirmed that its customer funds are backed 1:1 and “available for withdrawal at any time.”
Information for this briefing was found via Gemini and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
