Gemini Officially Ends Earn Program And Also Halted All Genesis Loans

Gemini has brought to an end its Earn Program, as it has also decided to end its loan agreement with Genesis, according to an email sent to its customers.

Gemini has informed its clients that it is ending customer loan agreements with Genesis Global Capital as it closes down its Earn program. The email stated that the Master Loan Agreement between customers and Genesis has been terminated as of January 8th, 2023. 

The email also mentioned that the Earn program has been closed and that Genesis must return all assets remaining in the program. Additionally, the company has communicated that it will prioritize returning customer funds with urgency, and existing redemption requests or the company’s own efforts to recover customer assets will not be impacted by the resolution of the loan agreement. The company also informed that it will be providing updates at a minimum on Tuesdays and Fridays until a resolution has been reached. 

The cause of this action is due to the collapse of the other lending platforms like FTX and hedge fund Three Arrows Capital, which led to the temporary pause of withdrawals from Genesis which then forced Gemini to lock down funds in its Earn program.

On Tuesday, Gemini President Cameron Winklevoss, posted an open letter on Twitter, in which he strongly criticized Digital Currency Group (DCG) the parent company of Genesis, accusing it of deceiving and defrauding over 340,000 Earn program users and providing false information about its solvency. 

Winklevoss also called for the removal of DCG CEO, Barry Silbert. In response, Silbert denied the accusations and said that funds were never combined among DCG’s subsidiaries and that the relationship with Three Arrows Capital was limited to a lending and trading agreement. He also added that Three Arrows Capital had made separate investments in Grayscale products.