Gemini Trust Co. Disputes Inaccurate Reporting
Gemini Trust Co., a leading crypto exchange, has expressed disappointment and frustration with a recent article published by the New York Post. The exchange claims that the story, which alleged questionable actions and mismanagement of funds, was not only inaccurate but also a deliberate attempt to manipulate public opinion.
The Allegations
The New York Post reported that Gemini withdrew $282 million from Genesis Global in August 2022, insinuating that this action was potentially harmful to investors. The story also portrayed Gemini’s founders, Cameron and Tyler Winklevoss, in a negative light.
Gemini vehemently denied any wrongdoing and clarified that the $282 million withdrawn from Genesis belonged to users of the Gemini Earn program, not corporate funds or personal funds of the founders or their investment firm.
Gemini Accuses Digital Currency Group
Gemini accused Barry Silbert and Digital Currency Group (DCG) of orchestrating a deliberate attempt to manipulate public opinion. The exchange suggested that the New York Post had been fed a pre-packaged and fictional story by these parties. DCG is currently under criminal investigation for fraudulent behavior.
Gemini Sheds Light on the Earn Program
To fully understand the situation, it’s crucial to examine the Gemini Earn program. The program allowed Gemini to establish a liquidity reserve for the benefit of Earn users. In response to market turmoil in 2022, Gemini decided to increase this liquidity reserve.
On August 9, 2022, Gemini pulled back $282 million of Earn users’ funds from Genesis and held them in the liquidity reserve. This action aimed to protect users from major exposure when Genesis ceased redemptions on November 16, 2022.
Hot Take: Gemini Fights Back Against Misleading Reporting
Gemini Trust Co. has responded strongly to a recent article by the New York Post, refuting allegations of questionable actions and mismanagement of funds. The exchange clarified that the funds withdrawn from Genesis Global belonged to users of the Gemini Earn program, not corporate or personal funds. Gemini also accused Digital Currency Group of manipulating public opinion and distracting from their own fraudulent behavior under investigation. By shedding light on the Earn program and its liquidity reserve, Gemini aimed to provide clarity and context to the situation. It remains committed to serving its users and maintaining transparency in the crypto industry.
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