Gemini suspends withdrawals for its  EARN program, Is it also on the edge of bankruptcy?

• Gemini, a regulated cryptocurrency exchange has temporarily suspended the withdrawals. 
• Now the question arises… is it safe to keep your assets on this platform?

In line with the PR team of the Winklevoss twins, the disapproval of service has to do with their associate Genesis Global Capital’s decisions. 

“We already know that Genesis Global Capital, LLC, which offers loans to customers with crypto as collateral has put a temporary ban on withdrawals and will not be able to fulfill customer retrieval in the service-level agreement of 5 business days. We and the Genesis team are working together for aiding customers to withdraw their funds from the Earn program on an immediate basis.”

Genesis has also described their decision and how the situation seems on their part. And, undoubtedly it all comes down to the downfall Sam Bankman-Fried took forward.

“FTX has made extraordinary market turbulence, which eventually led to unusual withdrawal requests which have surpassed our recent liquidity. Our first priority is to be in service of our clients and protect their assets. Thus, talking with our professional financial advisors and counsel, we have to take a very tough decision to halt savings and new loan commencement in the lending business for some time.”

Gemini’s statement

As per Gemini’s statement, the company takes guarantees that things will be normal very soon. “We are motivated by Genesis and its parent company Digital Currency Group’s devotion to perform everything in their energy to meet their commitment. “This does not influence any other Gemini products and services. Gemini Staking is a chunk of our Grow offering and difference from the Earn product, carries on to function as normal.”

The crypto expert Dylan LeClaire announced that Gemini’s services were interrupted and were down over the board and suggested everyone to withdraw.

The firm didn’t waste the time and publicized that “We faced an AmazonWeb Services EBS blackout with one of our main databases. We have reinstated the database and are taking the exchange support.” It all sounded dubious, particularly acknowledging how FTX’s website faced outrage before they initiated revealing it all. Although, after an hour they tweeted, “Gemini exchange is now online completely; all the funds of customer on the platform are held 1:1 and you can make withdrawal any time.”

As per the replies to that very tweet, some customers are still facing issues in withdrawing their funds. And about 30% of the people still trust that Gemini is privately collapsed.

Source: https://www.thecoinrepublic.com/2022/11/17/gemini-suspends-withdrawals-for-its-earn-program-is-it-also-on-the-edge-of-bankruptcy/