Gemini confirms it withdrew $282M from Genesis to boost liquidity reserves in 2022

Gemini has confirmed it withdrew $282 cardinal of its Earn users funds from the bankrupt crypto lender Genesis successful August past twelvemonth into its liquidity reserve, according to a Sept. 28 statement.

The speech made this connection successful effect to a New York Post study alleging that the crypto platform’s co-founders, Tyler and Cameron Winklevoss, had secretly withdrawn implicit $280 cardinal from the bankrupt lender.

According to the report, it was “unclear if the withdrawn funds were Gemini firm assets oregon from the Winklevoss twins’ idiosyncratic crypto stash.” However, the New York Post stated that “the sum did not see immoderate Gemini lawsuit funds.”

In response, Gemini stated that the study was “completely misleading,” adding that “everything the Post alleges successful its communicative is the nonstop opposite.”

Gemini justified its $282 cardinal withdrawal by pointing to the presumption of the Gemini Earn Program, which allowed it to make a “liquidity reserve” for the payment of Earn users. Gemini said:

“Amidst the wide marketplace turmoil successful the summertime of 2022, we decided to summation the liquidity reserve. As a result, we pulled backmost $282 cardinal of Earn users’ funds from Genesis connected August 9, 2022 and held those funds successful the liquidity reserve for their benefit.”

The speech explained that the withdrawal helped its users person $282 cardinal little vulnerability to Genesis erstwhile the bankrupt lender halted redemptions successful November past year.

Continues nationalist quality with Digital Currency Group

Gemini vehemently dismissed the Post’s study arsenic “pure fantasy,” suggesting it was a calculated effort to bolster the estimation of Digital Currency Group (DCG), the genitor institution of Genesis, and its CEO, Barry Silbert.

Gemini said:

“[The study was] pre-packaged and handed to the New York Post by BarrySilbert and DCG in different brazen effort to manipulate nationalist opinion, Earn users, and distract from their fraudulent behaviour that is presently nether transgression investigation.”

This continues the highly publicized dispute betwixt Gemini and DCG, which began erstwhile Genesis filed for bankruptcy. According to Gemini, DCG has been alert of the lender’s insolvency since 2022 but chose not to disclose this captious accusation to investors.

The station Gemini confirms it withdrew $282M from Genesis to boost liquidity reserves successful 2022 appeared archetypal connected CryptoSlate.