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Gemini Withdrew ‘Hundreds of Millions’ Before Genesis Collapse: Report

Cryptocurrency exchange Gemini reportedly withdrew “hundreds of millions of dollars” from the now-bankrupt crypto lender Genesis several months before the entity declared insolvency.

Two individuals who wished to remain anonymous and were knowledgeable about the matter reportedly provided the information.

Gemini Claims Withdrawal For Liquidity Needs

According to a Bloomberg report on September 28, Gemini extracted $282 million worth of crypto from Genesis in August 2022.

This allegedly occurred just five months prior to the filing for bankruptcy by Genesis’ lending arm on January 20th.

The sources claim that Gemini used the withdrawn funds from Genesis to establish a reserve. This was to allegedly ensure sufficient liquidity for Gemini Earn customers to facilitate “immediate redemptions.”

One of the sources goes on to that neither Cameron nor Tyler Winklevoss, personally received any of this money. More commonly known as the “Winklevoss twins,” the duo are the co-founders of Gemini.

“None of the money went directly to Gemini’s billionaire founders, the Winklevoss twins, this person said.”

Digital Currency Group (DCG) owns Genesis and attributes its own downfall primarily to the collapse of the crypto exchange FTX in November 2022.

Meanwhile, on September 15, Genesis announced the cessation of its global trading services.

Read more: 9 Best Crypto Exchanges for Day Trading in 2023

Gemini Asserts Genesis Creditors No Closer to Payment

Gemini has continuously opposed Genesis’ bankruptcy plan in recent times.

On August 31, BeInCrypto reported that Gemini claimed the plan lacked clarity and was “woefully light” on the specifics.

The exchange asserts that this complicates the creditors’ ability to comprehend the payment process.

Meanwhile, Gemini argues that Genesis has made no progress in paying the creditors since the lawsuit was initially filed in January:

“Despite the Debtors’ repeated promises that a deal is very close. The Debtors are no closer to a confirmable plan that has creditor support today than they were when these cases were filed in January.”

Read more: How to Choose The Right Crypto Exchange

Share
 9/28/2023

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