The co-founder of Gemini, Cameron Winklevoss, on Wednesday announced via a series of tweets that the crypto exchange has launched a page to help Gemini Earn users.
KEY TAKEAWAYS
- Gemini Earn was impacted after crypto lender Genesis paused withdrawals and Earn redemptions.
- Genesis is Gemini’s lending partner and it is facing liquidity issues amid the FTX crisis.
- Gemini has also formed a creditors’ committee and hired the law firm, Kirkland & Ellis.
The newly launched page will help bring transparency process regarding finding a resolution for all Earn users to redeem their funds.
In addition, the exchange has also formed a creditor’s committee which will be tasked with trying to recover lost money. They have also hired the law firm, Kirkland &Ellis, to help resolve the issues around the Earn product the earliest possible.
Genesis’ impact on Gemini Earn
Genesis and its parent company DCG are currently trying to raise about half a billion in emergency funding due to its exposure to the collapse FTX crypto exchange. DCG also owes Genesis about $1.7 billion. As a result, Genesis halted withdrawals and Gemini Earn redemptions and has not given any updates on when the services will resume.
As a result of halting the Gemini Earn redemptions, Genesis owes Gemini Earn users $900 million and Gemini is currently trying to recover those funds to help gain their customers’ trust which has been greatly impacted by the developments.