Yello Paradisers, there’s a storm brewing in the crypto world. Cryptocurrency exchange Gemini is under the spotlight for reportedly withdrawing a whopping $282 million in crypto from Genesis just months before its bankruptcy. Let’s dive deep into this.
📰Gemini’s Massive Withdrawal
Gemini, the cryptocurrency exchange co-founded by the Winklevoss twins, reportedly pulled out “hundreds of millions of dollars” from the now-insolvent crypto lender Genesis. This move came just a few months before Genesis declared bankruptcy.
According to insiders who chose to remain anonymous, Gemini made this massive withdrawal in August 2022, a mere five months before Genesis’ lending arm filed for bankruptcy on January 20th.
📰Why Did Gemini Withdraw?
The sources suggest that Gemini used the funds pulled out from Genesis to create a reserve. This reserve was aimed at ensuring that Gemini Earn customers had enough liquidity for “immediate redemptions.”
Interestingly, it’s been clarified that none of this money went directly to the pockets of the Winklevoss twins.
📰The Bigger Picture
Genesis, owned by the Digital Currency Group (DCG), attributes its downfall mainly to the collapse of the crypto exchange FTX in November 2022. Following this, Genesis announced the cessation of its global trading services in September.
Gemini has been vocal about its concerns, stating that Genesis’ liquidation plan lacked clarity and was “woefully light” on specifics. This, according to Gemini, complicates the creditors’ understanding of the payment process.
The drama doesn’t end there. Cameron Winklevoss has been openly addressing DCG’s CEO Barry Silbert, recently calling him out over an alleged inaccurate statement. Winklevoss emphasized the importance of correcting such statements, especially when they involve significant amounts.
Furthermore, Gemini has expressed its frustration over the lack of progress in paying the creditors since the lawsuit was initially filed in January.
The unfolding of events between Gemini and Genesis highlights the complexities and challenges in the crypto industry. With significant amounts involved and the reputation of major players at stake, the crypto community will be keenly watching how this saga unfolds.
Stay informed and stay safe, Paradisers!