With no positive agreement reached so far, Winklevoss Gemini Exchange has finally terminated its Earn program based on an email sent to users on Tuesday. Also, Gemini has ended its Master Loan Agreement (MLA) with Genesis Global Trading, hence, Genesis is expected to return all outstanding assets in the Earn program.
“We are writing to let you know that Gemini — acting as agent on your behalf — has terminated the Master Loan Agreement (MLA) between you and Genesis Global Capital, LLC (Genesis), effective as of January 8, 2023,” Gemini’s email outlined “This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program.”
However, it was clarified that previous redemption requests are not affected by this decision as they would still be completed by Genesis. Essentially, Gemini assured users that it is operating with a sense of urgency to ensure that funds are returned citing this as its highest priority at the moment. Updates on the intended resolution will be sent to users every Tuesday and Friday until a settlement is reached.
Gemini and Genesis at Loggerhead Over Earn Product
Gemini has been making efforts to ensure that users of its Earn product are able to redeem their funds. The Winklevoss-owned exchange collaborated with Genesis and the parent company Digital Currency Group (DCG) to develop strategies that will influence a refund for users. At the time, Gemini perceived that Genesis and DCG were committed to exploring every possible option to fulfill their obligations to Earn users.
Additionally, an ad hoc Committee was inaugurated to take up the settlement but it did not yield a positive result. After a tiring delay, Cameron Winklevoss co-founder of Gemini sent a letter to Barry Silbert, Chief Executive Officer (CEO) of DCG stating that he has “bad faith stall tactics” citing his refusal to release Earn funds which were entrusted to him.
On the other hand, Genesis seems to not agree with the termination or everything that Gemini said. The troubled firm stated that it is “disappointed that Gemini is waging a public media campaign despite ongoing productive private dialogue between the parties.”
After suspending withdrawal on its platform in November, Genesis has been wallowing in problems.
The company’s balance sheet revealed that Genesis has up to $2.8 million in outstanding debts with two groups of its creditors owed about $1.8 billion.