United States cryptocurrency exchange Gemini announced that it will continue to work with crypto industry juggernauts Genesis and its parent company Digital Currency Group (DCG) to come up with a strategy that will enable users to redeem their funds from its Earn product. According to a Twitter thread, Gemini regards this mission as its present highest priority and appreciates the Earn users for being patient and understanding during this time.
“We continue to work with Genesis Global Capital, LLC (Genesis) — the lending partner of Earn — and its parent company Digital Currency Group, Inc. (DCG) to find a solution for Earn users to redeem their funds. This remains our highest priority and we understand Genesis and DCG remain committed to exploring every possible option to fulfil their obligations to Earn users,” Gemini tweeted.
In addition to the announcement, it was emphasized that the Earn product had not affected or imparted any other Gemini products and services as the crypto firm remains a full reserve exchange and custodian. Also amplifying that “All customer funds held on the Gemini Exchange and in Gemini Custody are held 1-to-1 and available for withdrawal at any time.”
Genesis Halt Lending Withdrawal
On November 16th, it was announced that Genesis Global Trading had suspended lending withdrawals on its platform due to the general impact of the FTX liquidity crunch. Although the company claimed that its “spot and derivatives trading and custody businesses remain fully operational.”
Following the suspension of withdrawal on Genesis, Gemini announced that its Earn product will not be able to meet customer redemptions within the service-level agreement of five business days seeing that its lending partner halted withdrawal.
“We are disappointed that the Earn program SLA will not be met, but we are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program,” Gemini said in a blog post.
Almost a week after the incident, the New York-based exchange reassured its users of active collaboration to ensure they redeem their funds. Gemini prides itself in providing a clear operational framework in the crypto industry and had begun the month on a good note with its further expansion into Europe.