One Crypto exchange by the name of Gemini recently made a withdrawal of $284 million in crypto from Genesis exchange. On September 28 Bloomberg reported that Gemini made the withdrawal in August last year.
This apparently happened just five months prior to Genesis’ lending division declaring bankruptcy on January 20. The information was passed by two individuals who were not willing to have their identities disclosed. On September 15th The exchange later announced that no worldwide trading services would be available on their exchange.
It was later made clear that none of the funds were credited to the ‘Winklevoss twins’, the Co- co-founders of Gemini, thus creating a transparent environment for its users. ” None of the money went directly to Gemini’s billionaire founders, the Winklevoss twins, this person said.”
Gemini withdraws funds to increase its users’ Liquidity
Following more reports it was said that Gemini exchange used the crypto withdrawals to create a reserve for its users, thus creating assurance of enough liquidity on the exchange.
In addition, Digital Currency Group (DCG ) which is the legitimate owner of Genesis relates the sudden downfall of its exchange to the FTX crash that occurred on November 17 last year. Winklevoss recently criticized Silbert for what he thought was an inaccurate statement. This is what Winklevoss said:
“You’ve got to be kidding me, When a company you own says you wrote a $1.1 billion dollar check that you know you didn’t write, yes, you have a duty to correct this.”.
Gemini Exchange also asserted that since the case was first filed in January, Genesis had not made any movement toward paying the creditors. This lack of concern for its users had created a bad image of the exchange.
