Leading Cryptocurrency Exchange Gemini To Charge Crypto Withdrawals

• Coinbase, recently reported a 27% drop in income and used over the last year.
• A dynamic or flat fee will be applied to all withdrawals.

It was a first for the U.S.-based cryptocurrency exchange, and custodian as billionaire bitcoiners Cameron and Tyler Winklevoss are laying off 10% of Gemini’s workers. Coinciding with the recent “crypto winter,” a “contraction phase” that has been exacerbated by the present macroeconomic and geopolitical instability, the twins said in a blog post last week. The message added, “We are not alone.” Another cryptocurrency exchange, Coinbase, recently reported a 27% drop in income and used over the last year.

The crypto market has had rough weeks. As one of the most prominent dollar-pegged stablecoins crashed nearly overnight, the industry’s market capitalization lost $500 billion. Dropping trade volumes on crypto exchanges is one clue that we may be heading in that direction, but it is unclear if this latest crash represents the beginning of the next crypto winter.

Dynamic Fee or Flat Fee Applicable

Furthermore, recently IRA Financial Trust, a business that administers non-traditional retirement accounts like Bitcoin, filed a lawsuit against the cryptocurrency exchange. In February, hackers gained $36 million in cryptocurrency access from IRA Financial. Hackers made off with $21 million worth of Bitcoin and $15 million worth of Ethereum from retirement accounts.

After the hacking event, the New York-based exchange Gemini “failed to freeze accounts within a sufficient time frame immediately following the incident,” according to IRA’s claim. Gemini has also stated that effective June 15th, it would no longer allow free cryptocurrency withdrawals. This was communicated to the platform’s users through email. A dynamic or flat fee will be applied to all withdrawals, regardless of whether they are made to another wallet or exchange. This news has dealt investors a significant blow.