Gemini Responds to Misleading Article About $282 Million Transaction
Gemini, a popular cryptocurrency exchange, has disputed the claims made in an article by the New York Post regarding a $282 million transaction involving Genesis, a crypto bank. The article suggested that the founders of Gemini, the Winklevoss twins, made a secret withdrawal of this amount before Genesis halted customer withdrawals, leaving Gemini Earn users in a difficult situation.
Gemini has strongly denied these allegations and took to Twitter to clarify the situation. They stated that the $282 million was actually funds from Gemini Earn redirected to a liquidity reserve. Additionally, they raised suspicions against DCG, Genesis’ parent company, and its CEO Barry Silbert, suggesting that they may have orchestrated the original story.
Gemini’s Strategic Move to Protect Earn Users
Gemini emphasized that the withdrawal of funds from Genesis was a strategic move to strengthen their liquidity reserve and minimize potential risks. They highlighted the fact that this action actually protected Earn users by securing hundreds of millions of dollars.
On their website, Gemini provides detailed information about the purpose of the liquidity reserve for Earn. It helps facilitate loan callbacks and withdrawals by retaining a portion of funds earmarked for lending. Gemini expressed their disappointment at how their protective measure had been misinterpreted.
The Ongoing Feud Between Gemini, Genesis, and DCG
This dispute between Gemini, Genesis, and DCG is just one episode in an ongoing conflict concerning Earn customers’ funds. Gemini claims that Genesis and DCG owe Earn users approximately $900 million. Despite initial progress towards resolution earlier this year, it fell apart when DCG allegedly defaulted on a $630 million transaction.
The situation escalated further when Gemini filed a lawsuit against DCG and Silbert, accusing them of spreading misleading narratives about Genesis’ financial status. DCG and Silbert have attempted to dismiss the lawsuit, claiming minimal involvement and arguing that their statements were not demonstrably false. Gemini responded by accusing the Winklevoss brothers of leading a “Twitter-centric smear campaign.”
Hot Take: Gemini Fights Back Against Misleading Reports
Gemini has strongly refuted the allegations made in the New York Post article, asserting that the $282 million transaction was a strategic move to protect Earn users. They criticized the reportage, calling it an attempt to manipulate public opinion. This ongoing feud highlights the contentious nature of the relationship between Gemini, Genesis, and DCG regarding Earn customers’ funds.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
