Gemini has taken the initiative to inform all of its on-board clients, through an officially sent email, of its decision to put an end to the customer loan agreements that it had duly inked with Genesis Global Capital. This happens to be a follow-up action after it stopped its Earn program.
However, they have brought about clarity to the fact that they will be making it their top-most priority to give back the customer funds and that this will be carried out on a somewhat war footing.
In its official notification to its clients, Gemini has mentioned the fact that it is playing the role of an agent on behalf of them and that they have put an end to and nullified the Master Loan Agreement (MLA) that had been duly inked between them and Genesis Global Capital, LLC (Genesis), with effect from the 8th of January, 2023.
There happens to also be a further mention of the fact that Gemini, on its part, is ending the Earn program too, and that it now becomes the onus of Genesis to give back all of the outstanding assets belonging to the program.
The email further states that the present recovery requests, together with Gemini’s capabilities regarding looking for a resolution in order to get back the customer’s assets, will not in any way be influenced by the loan agreement’s resolution. It is also mentioned in the email that on a regular basis, all connected clients will duly be receiving updates on the entire proceedings until such time when an agreeable resolution has been reached.
All of these happenings could be attributed to the ultimate breaking down of FTX, along with hedge fund Three Arrows Capital which finally forced the hand of Genesis to put a stop-gap on withdrawals. It was also responsible for Gemini locking down on funds where its Earn program was concerned.
As per an open letter posted on Twitter by the President of Gemini, Cameron Winklevoss, he seemed to have turned up the heat where Digital Currency Group (DCG) is concerned. Additionally, he leveled allegations that the previous lending partner of Genesis committed fraudulent activities in the case of 340,000 Earn users. Additionally, the users were misled regarding DGC’s solvency.
On his part, the CEO of DCG, Barry Silbert, retaliated by stating that no amount of funds had been commingled amongst DCG subsidiaries. He also mentions his relations and terms with Three Arrows Capital were only related to lending and trading agreements.
