Gemini Promises to Provide More Transparency to Beleaguered Earn Customers
This Tuesday, Gemini launched a new page aptly named “Gemini Earn Updates” with the stated goal of providing its users with more transparency around the ongoing recovery process. Gemini was one of the companies forced to freeze withdrawals in the immediate aftermath of FTX’s collapse.
Gemini Earn to Update Users Twice a Week “at a Minimum”
On Tuesday, November 6th, Cameron Winklevoss, one of the co-founders of Gemini, announced that his company created a new page to provide updates to Gemini Earn customers. According to the announcement, this “updates” page is aimed at providing users with as much transparency as possible.
In mid-November, Gemini Earn announced it was temporarily halting withdrawals due to the difficulties stemming from the early stages of the FTX contagion. Recently, the company started communicating progress on unfreezing withdrawals more regularly and it announced the creation ad hoc creditor committee on December 3rd.
According to the Tuesday announcement—as well as the “Gemini Earn Updates” page—the company is engaged in an active conversation with Genesis and the Digital Currency Group as it is reportedly trying to recover $900 million from Barry Silbert’s company. Gemini also promised that the page would be updated each Tuesday and Friday at the very least.
Gemini — acting as agent on behalf of Earn users — has been in ongoing conversations with Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), the parent company of Genesis, and Barry Silbert (CEO of DCG) in an effort to find a resolution as soon as possible.
Gemini, Genesis, and the Fall of FTX
The problems Gemini Earn is facing are not only a result of the bankruptcy of FTX but are also closely linked with issues pressing DCG’s Genesis. Genesis Global Capital is a long-standing lending partner of Gemini Earn, and it also froze withdrawals on November 16th.
Since then, it was revealed that Genesis tried and failed to secure rescue funds, although a company spokesperson called the information dated by the time the first reports came out. Additionally, DCG’s Bary Silber recently sent a letter to stakeholders with a reassuring message claiming he is expecting $800 million in revenue this year—though it was reported around the same time that Genesis hired restructuring advisors.
BlockFI, another company with close links to Gemini, announced it would no longer be able to operate normally on the same day FTX filed for bankruptcy. More recently, BlockFi followed FTX into chapter 11 bankruptcy.
This article originally appeared on The Tokenist
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