Embattled crypto broker Genesis and its parent company Digital Currency Group (DCG) owe users of Gemini Earn $900 million, the Financial Times reported on Saturday, citing anonymous sources. Gemini had used Genesis as its primary lending partner for its high-yield Earn service, which allowed customers to deposit their cryptocurrency in exchange for interest, similar to a bank account, offering returns of between 0.45% and 8% depending on which token you deposited. According to the FT, Gemini is working as part of a creditors’ committee to regain the funds from Genesis and DCG. The Gemini Earn service has experienced severe disruption since the FTX contagion began at the start of last month. Gemini, which Cameron and Tyler Winklevoss founded in 2015, told users it would be pausing withdrawals from Gemini Earn on November 16, and has yet to provide any clarity as to when they are expected to be reopened. The exchange attributed the move to “unprecedented market turmoil”. The move came directly after Genesis suspended redemptions for customers and new loans due to “abnormal withdrawal requests” following the FTX collapse on the same day.
Read more : Genesis Owes Gemini Earn Users $900M: Report.
