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FTX’s fall continues to put other cryptocurrency companies on edge

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Key facts:
  • Genesis, Gemini’s lending subsidiary, has stopped withdrawals to its users.

  • Gemini assures that Genesis’ decision does not affect the operations of the exchange.

In a series of tweets posted Wednesday, Nov. 16, the Gemini exchange said it has temporarily suspended withdrawals from its Genesis Global Capital credit subsidiary following the collapse of FTX.

Gemini notedWe understand that Genesis Global Capital, LLC (Genesis), the lending partner of Earn, has suspended withdrawals and will not be able to meet repayments. from customers within the 5 working days stipulated in the service level agreement (SLA).”

The exchange owned by the Winklevoss twins said it is working with Genesis to help its customers “get refunds as quickly as possible.”

The decision comes after a period of turbulence following the failure of the FTX exchange and Sam Bankman-Fried’s Alameda Research company. Genesis Chief Executive Officer Derar Islim said the dramatic fall of FTX caused withdrawal requests that exceeded Genesis’ liquidity. The exchange said. had about $175 million in funds tied up in FTX.

Genesis Global Trading is owned by Digital Currency Group (DCG), which also owns Grayscale Investments. The following emerged on social media. entries that DCG may resort to dissolving the bitcoin and ether trusts GBTC and ETHE to ensure Genesis’ survival. GBTC is the largest bitcoin trust, with 643,000 BTC, according to bitcointreasuries.org.

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