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Gemini Terminates Loan Agreement with Genesis

Gemini ends its crypto yield program with Genesis, prioritizing asset recovery for Earn users.
Published on 2023-01-11

Termination of the Master Loan Agreement

Gemini has officially terminated the Master Loan Agreement (MLA) with Genesis, marking the end of its crypto yield program. This decision, effective January 8, aims to address the withdrawal issues faced by Earn users, involving over $900 million stuck with Genesis.

Urgent Asset Recovery

Gemini has committed to returning the assets to its Earn users with urgency. The termination requires Genesis to return all outstanding assets, reassuring users that existing redemption requests remain valid and await fulfillment.

Winklevoss and DCG Dispute

Gemini co-founder Cameron Winklevoss has publicly criticized Barry Silbert, CEO of Digital Currency Group (DCG), which owns Genesis. Winklevoss accuses Silbert of delaying tactics concerning the $900 million owed to Gemini Earn customers and suggests possible financial mismanagement akin to practices at FTX.

Response from DCG

DCG has refuted Winklevoss' accusations as false and defamatory, claiming that Gemini is deflecting blame for the issues with the Earn program. Despite the ongoing conflict, Genesis has expressed a commitment to resolving its liquidity problems, although it requires more time.

Future Uncertainties

The resolution path for Gemini remains uncertain if DCG does not respond to Winklevoss' demands. This ongoing dispute could mean extended delays for Earn users awaiting fund recovery. The situation continues to evolve, and both investors and users are advised to monitor developments closely.

Implications for Investors

The intense dispute between Gemini and DCG poses significant financial implications. A potential bankruptcy of either entity could lead to further market volatility, underscoring the importance for stakeholders to stay informed.

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