Gemini Earn, a lending platform of the Gemini crypto exchange, has paused withdrawals as its partner Genesis is reportedly facing liquidity issues.
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Gemini said in a blog post that Genesis' partial suspension of services made it impossible to meet requirements of the service-level agreement. The exchange said:
"We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible. We will provide more information in the coming days."
Gemini emphasized that the move doesn't impact its other products and services. While the New York-based cryptocurrency exchange didn't go into specifics about what caused its lending partner to face liquidity issues, reports said that Genesis interim CEO, Derar Islim, referred to FTX's bankruptcy as the reason behind the difficulties during a call on Wednesday.
As iHodl earlier reported, FTX filed for Chapter 11 bankruptcy in the US as the platform reportedly owes its users around $10 billion. Approximately 130 firms affiliated with FTX are part of the proceedings in the proceedings. FTX Australia and LedgerX were not included in the case.
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