Gemini was founded in 2014 by Tyler and Cameron Winklevoss.Gemini
Crypto lender Genesis owes exchange platform Gemini $900 million, the Financial Times reported.
Gemini, run by Tyler and Cameron Winklevoss, is trying to recover its customers’ funds.
It has created a creditors’ committee and commissioned an investment bank to work out solutions.
Genesis, a crypto broker, and its parent company Digital Currency Group owe $900 million to a crypto exchange run by the Winklevoss twins, the Financial Times reported.
Genesis, which has $2.8 billion in active loans according to its website, tweeted that repayments and new loans were suspended on November 16th. The company cited “unprecedented market turbulence” that resulted in a lack of available funds.
Gemini has a crypto lending product through its partnership with Genesis, which acts as a broker.
Genesis has been caught up in the collapse of FTX and Gemini, the platform co-founded by Tyler and Cameron Winklevoss, is trying to recover its clients’ funds, according to FT.
Gemini has formed a committee of creditors to try and recover its funds from Genesis and DCG. Genesis has been trying to raise emergency funds and hired an investment bank to explore possible solutions to repay the funds, the newspaper reported.
Following the FTX fallout, which revealed the company was missing at least $1 billion in customer funds, Gemini tweeted to reassure its own customers that it keeps their digital assets in accounts separate from its own assets .
Gemini tweeted on November 29, “We do not do anything with your digital assets unless you have specifically authorized and directed us to do so. We are more confident than ever that asking for permission, not forgiveness, is the right way to build trust with you and a lasting business.”
Founded in 2014 by the Winklevoss twins, Gemini was the first US-based licensed Ethereum exchange.
Genesis and Gemini did not immediately respond to insider requests for comment.
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