Genesis And Digital Currency Group Owe $900M To Gemini Users

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Cameron and Tyler Winklevoss; Photo Source: CNBC

Crypto lending firm Genesis and its parent company, Digital Currency Group (DCG), owe $900M to users of Gemini Earn.  

Genesis was one of the first firms that suspended its withdrawals after FTX declared bankruptcy. Soon, crypto exchange Gemini revealed it was unable to process asset deposits on its Earn program. This is because Genesis acted as Gemini's main lending partner for its high-interest Earn product.

Financial Times reported that Gemini has formed a creditors’ committee that is currently in talks with DCG and Genesis to recover the $900M. 

Gemini also recently launched its Proof-of-Reserve audit to improve transparency and regain the trust of its user base. The exchange also reassured its clients by claiming that it holds customers' assets on a 1:1 ratio, adding,

“From day one, we’ve prioritized the security of our customers’ assets. We never have and never will compromise on that. Gemini is a full-reserve exchange and custodian.”



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Meanwhile, Genesis has hired Moelis & Company to seek potential financing options. The embattled crypto lender is also owed $575M by DCG Capital.

Currently, the Gemini Earn page is longer accessible. Besides Gemini Earn, the exchange’s other services remain fully operational.

Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

Crypto lending firm Genesis and its parent company, Digital Currency Group (DCG), owe $900M to users of Gemini Earn.  

Genesis was one of the first firms that suspended its withdrawals after FTX declared bankruptcy. Soon, crypto exchange Gemini revealed it was unable to process asset deposits on its Earn program. This is because Genesis acted as Gemini's main lending partner for its high-interest Earn product.

Financial Times reported that Gemini has formed a creditors’ committee that is currently in talks with DCG and Genesis to recover the $900M. 

Gemini also recently launched its Proof-of-Reserve audit to improve transparency and regain the trust of its user base. The exchange also reassured its clients by claiming that it holds customers' assets on a 1:1 ratio, adding,

“From day one, we’ve prioritized the security of our customers’ assets. We never have and never will compromise on that. Gemini is a full-reserve exchange and custodian.”



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Meanwhile, Genesis has hired Moelis & Company to seek potential financing options. The embattled crypto lender is also owed $575M by DCG Capital.

Currently, the Gemini Earn page is longer accessible. Besides Gemini Earn, the exchange’s other services remain fully operational.

Written by
Ayush Pande