Gemini Earn Warns Customers of Likely Withdrawal Delays Due to Genesis Lending Pause

Crypto exchange Gemini warned customers today that there may be delays for withdrawals on its Earn product.

The delays are due to Genesis Global Capital’s announcement today that it would pause withdrawals on its lending platform. Genesis services the crypto exchange’s Earn product, which lets users earn interest for depositing idle crypto. Rates vary from crypto to crypto, but range from as little as .45% up to 8%.

“Gemini is partnering with accredited third-party borrowers including Genesis, who are vetted through a risk management framework which reviews our partners’ collateralization management process,” reads the exchange’s support page.

“We are aware that Genesis Global Capital, LLC (Genesis) — the lending partner of the Earn program — has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days,” Gemini’s post read.

The announcement added that the crypto exchange was working to redeem user funds from its Earn program “as quickly as possible.” Gemini said that the move “does not impact any other Gemini products and services.”

Today’s moves from Gemini and Genesis are just the latest the ongoing fallout from the collapsing FTX Exchange led by Sam Bankman-Fried.

Besides various lending outfits halting withdrawals, FTX’s implosion has also left various trading desks and venture firms high and dry.

Sino Global, a crypto-centric investment company, announced it had a “mid-seven figures” exposure to the exchange on Tuesday. A similar company called Ikigai revealed that it had lost access to a “large majority” of its assets on FTX.