FTX contagion spreads to Gemini, the exchange delays withdrawals on lending program


  • Gemini Trust Co, the cryptocurrency platform run by Tyler and Cameron Winklevoss delayed redemptions by customers from its Earn program. 
  • Gemini’s partner Genesis Global paused withdrawals on its borrowing platform amid a liquidity crunch, driving Gemini to halt withdrawals from the Earn program. 
  • Several Gemini users have reported challenges logging in, experts suspect that the exchange’s infrastructure is overwhelmed. 

Crypto Twitter users reported that log-ins are disabled on Gemini exchange. The exchange platform delayed redemptions for customers since its partner Genesis Global suffered a liquidity crunch. FTX exchange’s contagion has spread in the crypto market across platforms like Genesis Global. 

Also read: Serum price nearly doubled post the emergency fork in the aftermath of FTX exchange hack

Gemini exchange delays withdrawals on its lending program

Regulated crypto exchange Gemini delayed withdrawals from its lending program. Once users open a Gemini account, they can purchase any amount of cryptocurrency and immediately transfer it to Gemini Earn, which pays interest on their holdings through Gemini’s program. 

Gemini announced that its partner Genesis Global is facing a liquidity crunch. The derivatives unit of Genesis Global Capital had $175 million in funds locked up on the bankrupt FTX exchange. This has driven Gemini exchange to halt withdrawals from the Earn program.

The crypto brokerage Genesis is suspending redemptions and new loan originations at its lending business after facing “abnormal withdrawal requests" in the aftermath of the collapse of FTX.

Twitter users have noted concerning messages when attempting to log in to Gemini exchange. It is likely that the exchange’s infrastructure is overwhelmed. Log-ins are currently disabled and users report the following messages:

Gemini withdrawals disabled

Gemini withdrawals disabled

Users cannot login to Gemini exchange

FTX crisis is spreading in the crypto ecosystem 

Earlier this week, BlockFi, a crypto lender with significant exposure to FTX exchange suspended withdrawals and prepared for bankruptcy. With Genesis halting crypto withdrawals, FTX’s liquidity crisis is negatively influencing a large number of platforms in the industry. 

Gemini announced that it is working with Genesis to help customers redeem their funds from the Earn program “as quickly as possible." Until then, login to the Gemini exchange is disabled and users receive "service disruption" pop-ups when attempting to log in. 


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