Panic spreads from FTX to other cryptocurrency platforms

Panic spreads from FTX to other cryptocurrency platforms

According to reports, Gemini is experiencing a liquidity crisis as customers demand their money as a result of a week of market turmoil.

More businesses in the sector may experience severe liquidity problems as a result of the ripple effects of the abrupt collapse of the FTX cryptocurrency exchange. The Winklevoss brothers’ company Gemini is experiencing a surge in withdrawals.

Gemini has experienced net outflows of $682 million over the past seven days, with $485 million of that amount coming in the final 24 hours of the survey, according to data from blockchain analytics platform Nansen.

The business, which was established by Cameron and Tyler Winklevoss, has been attempting to calm cryptocurrency investors. On Wednesday, it announced that it would stop allowing withdrawals from its interest-bearing Earn accounts. One of the first and most well-known cryptocurrency brokers, Genesis, is its lending partner for the Earn accounts.

Gemini stated, “We are aware that Genesis Global Capital… has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days,” and they are working to assist customers “as soon as possible” with their Earn program redemptions.

Genesis, a cryptocurrency exchange, confirmed on Wednesday that it has halted customer withdrawals and the creation of new loans due to investor anxiety.

Two days before FTX declared bankruptcy, on November 9, Cameron Winklevoss tweeted a barely disguised criticism of FTX, saying: “We do not do anything with your funds unless you have specifically authorized and directed us to do so. Regulatory oversight is crucial because it makes sure organizations like Gemini follow through on their commitments.

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