Gemini and Digital Currency Group Owe Users $900 Million in Gemini Earn Funds

1: digital currency group (dcg) and its subsidiary gemini are both involved in a financial crisis that has left users of gemini earn with $900 million in debt. the crisis began at the start of last month when ftx experienced a collapse, leading to genesis suspending redemptions and new loans due to “abnormal withdrawal requests”.

2: gemini earn, a service that allowed customers to deposit their cryptocurrency in exchange for interest, had experienced severe disruption since the ftx contagion began. gemini told users it would be pausing withdrawals from gemini earn on november 16. gemini was founded in 2015 by cameron and tyler winklevoss and offered returns of between 0.45% and 8% depending on which token was deposited.

3: the complex financial relationship between gemini and its parent company may be muddying the already worrying outlook for its creditors. dcg owes genesis $1.7 billion out of its total outstanding debts of $2 billion. genesis had exposure to ftx of at least $175 million and is now reportedly working with investment bank moelis & co about potential financing options. all other gemini services, including its exchange, gemini credit card, and gemini staking remain fully functional and working as normal.

By Evey Lovelace

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