Gemini formed an ad hoc committee to advocate for a solution for Earn users amid suspension of withdrawals
To resolve ongoing issues and redeem funds for profitable users, Gemini formed a special committee with other creditors.
Acquisition Update: On Saturday (December 3, 2022), Gemini formed a special committee (Creditors Committee) with other creditors to coordinate and advocate for a resolution.
— Cameron Winklevoss (@cameron) December 5, 2022
According to Genesis Global Capital, there have been ongoing discussions between Genesis and its parent company Digital Currency Group Inc. (DCG) and DCG CEO Barry Silbert to find a solution. It is done
The exchange also retained Houlihan Lokey as financial advisor to represent the Board of Creditors and appointed multinational law firm Kirkland & Ellis to represent the Board of Creditors.
Affected by FTX, Gemini suspended withdrawals for acquired users on November 16th, citing “abnormal withdrawal requests.” At the time, the exchange said it was working with Genesis to help customers redeem their funds “as soon as possible,” but did not disclose a timeline.
According to users, the market turmoil caused by FTX has exacerbated the liquidity crisis sparked by the bankruptcy of Three Arrows Capital.
According to data compiled by the Blockchain Intelligence Platform NansenGemini saw a net outflow of $485 million around Nov. 16. Nansen suggests total crypto outflows of $1.55 billion compared to $866 billion in inflows, with net outflows of $682 million post-FTX fallout. I’m here.
Additionally, the digital asset balance of the cryptocurrency wallet identified as Gemini has dropped to $1.7 billion from about $2.2 billion a day earlier, according to the blockchain data platform. Arkham Intelligence.
Some positives of Gemini
Gemini Information page Recently, Gemini revealed that it holds over $4.6 billion in crypto assets and has $601 million in treasury to support the stablecoin GUSD.
Further research shows that the exchange’s assets include 2,257,474,294 BTC, 1,714,709,859 ETH, and $681,003,276 in other cryptos. In addition, there is $542,892,356 in fiat currency held in FDIC-insured banks.
Despite withdrawal suspension, Gemini announced New regulatory approvals in both Italy and Greece. The company currently operates in over 65 countries around the world, including Croatia, Cyprus, Czech Republic, Denmark, Hungary, Ireland, Latvia, Liechtenstein, Portugal, Romania, Slovenia and Sweden.
