February 27, 2024

Cryptocurrency exchange Gemini announced a possible withdrawal delay

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Cryptocurrency exchange Gemini announced a possible withdrawal delay

Gemini warns users of possible delays in withdrawing funds from the Earn project due to the suspension of the Genesis lending platform.

According to Gemini's announcement, lending partnerexchange under the Earn Genesis program Global Capital (Genesis) has suspended withdrawals and has been unable to fulfill its obligations to clients under the service level agreement (SLA) entered into by the parties for the last five business days. 

The Earn product that Genesis powers allows users to earn interest income on deposited crypto assets.

The exchange says it is in close contactwith the Genesis team to help customers trying to withdraw their funds from the Earn program as quickly as possible, and promises to provide more information in the coming days. The Gemini team says it is disappointed that the Earn maintenance agreement was violated, but that the event "will not impact other Gemini products and services."

As of the end of the thirdquarter Genesis Global Capital, the lending arm of crypto investment bank Genesis Global Trading, serves an institutional client base with a total loan portfolio of more than $2.8 billion. In media comments Interim CEO of Genesis Global Trading Derar Islim said that Problems with withdrawals and servicing current obligations of Genesis arose after the collapse of the FTX cryptocurrency exchange.

Last week Genesis reported that itsThe derivatives division lost access to approximately $175 million of blocked funds in its FTX trading account. The panic caused by the sharp fall of the FTX exchange provoked a massive request among Genesis clients to withdraw funds from the platform, which ultimately exceeded its current liquidity.

Liquidity problems for OTC cryptocurrency dealer Genesis Global Trading have begun
back in June, when it became known that the company could face losses of hundreds of millions of dollars due to the loss of liquidity of counterparties Three Arrows Capital and Babel Finance.