Crypto report: Gemini investors owed $900m by Genesis

Cryptocurrency lending platform Genesis, along with its parent company Digital Currency Group, reportedly owes $900 million to clients of crypto exchange Gemini.

Gemini Earn, part of Gemini’s reward programme, is in partnership with Genesis and offers users the opportunity to earn by lending out their cryptocurrency including Bitcoin and stablecoins. According to a report by Financial Times, Gemini Earn investors are experiencing issues with deposits, as per the status page, “[some] systems are currently experiencing outages”.

In the middle of November, Genesis announced that it would temporarily suspend withdrawals as a result of unprecedented market uncertainty following the FTX crash. To resolve issues, Genesis is reportedly looking to raise money for the lending platform, despite refuting rumours of bankruptcy. Currently, Gemini Earn services remain unavailable but other Gemini services are operating as usual. This issue was first logged on November 16th and, at the time of writing, it has not been updated with any resolution since.

Following the issues of Gemini Earn, Gemini announced the launch of the Trust Center, a new product that shows users a dashboard of their funds and other data related to their trading accounts.

1/ We are pleased to announce the launch of the @Gemini Trust Center, a dashboard of metrics for the funds we hold on the Gemini platform and on your behalf, as well as other important data and information.

Learn more: https://t.co/EXaIDyezZt

— Gemini (@Gemini) November 29, 2022

In response, users took to comment on how the lack of Gemini Earn’s services, in association with Genesis, is not boding well for  Gemini:

“Gemini will not be trusted by anyone if the EARN situation is not resolved for your customers.  Do not create and market a product that has absurd risk to your customer’s funds. Not ethical for Gemini to collect fees but take no responsibility. Not good care for your customers.”