One of the cryptocurrency firms slightly affected by the FTX meltdown, Gemini has revealed plans to allow users to withdraw funds from it’s platform. In a Tweet today, the firm said its working with some firms to seek a solution for Earn users to redeem their funds. Earn is an initiative on the Gemini platform that aids investors to earn passively.
As revealed, the firms are Genesis Global Capital, LCC (Genesis), and Digital Currency Group, Inc. Additionally, Gemini said aiding Earn users to retrieve their funds remains it priority. Also, the firm disclosed that it’s committed to seeking every possible option to fulfil its responsibilities to its users.
Further, Gemini appreciated its earn users for their patience during this difficult time. As submitted, the cryptocurrency exchange divulges that it’s working to make available an informational material update to users as soon as possible.
Notably, the cryptocurrency exchange emphasized that the crisis doesn’t affect other services on its platform. Gemini describes how other users cannot be affected by the crisis claiming it is a full reserve exchange and custodian. Backing this claim, the firm said customers’ funds on its platform are held 1-to-1 with sufficient reserve.
Why did Gemini halt withdrawal against Earn users
Recall that last week, Gemini announced the suspension of withdrawal for Earn users. Then, the suspension is due to the decision of Genisis Global Capital, the lending arm of Genesis Global Trading to halt its loan services due to the FTX crisis. It’s worth noting that Genesis Global Capital is the loan partner of Gemini’s Earn initiative.
Meanwhile, Gemini established that it will work with relevant firms to ensure that Earn users retrieve their funds. However, Genesis Capital Global at the end of its third quarter has more than $2.8 billion in total active loans. While explaining reasons for suspending its loan activities, the firm said the decision is an attempt to navigate through the difficult market enviroment. However, Genesis said its doing everything to serve its customers.
With the recent update from Gemini, there are promising pointers that the cryptocurrency exchange will resume withdrawals for Earn users soon. Majorly, this is because the cryptocurrency exchange doesn’t have financial exposure to the struggling FTX. Nevertheless, activities on Gemini remain as usual, except for Earn users that are unable to withdraw funds.