Financial Times: Genesis owes Gemini clients $900 million

ChainCatcher news, according to the Financial Times, crypto trading and lending institution Genesis owes $900 million to clients of the Winklevoss brothers' crypto trading platform Gemini. According to informed sources, Gemini is attempting to recover the funds, indicating that the crypto lending market is at the center of an industry credit crunch. Other insiders have stated that Gemini has formed a creditors' committee to recover funds from Genesis and its parent company DCG. Both Gemini and Genesis declined to comment on this.

It is reported that Genesis is a key partner in Gemini's "Earn" program, where retail investors lend their tokens in exchange for a fixed return stream. Last month, after Genesis announced that "unprecedented market turmoil" meant it lacked sufficient liquidity to meet redemption requests, Gemini halted withdrawals from the program. (Source link)