The dispute between Gemini and the Genesis group has intensified, especially with the more recent developments. Gemini has officially ended the interest-bearing product, which is the main earning program. This news was circulated via email in January. Gemini has terminated existing master loan agreements with Genesis Global Capital, which was responsible for executing the Earn program on behalf of its clients. This move by Gemini is an extension of the public dispute over that took place between Genesis and itself.
In the email sent to Gemini customers on Tuesday, Gemini mentioned that it had shut down the program to get Genesis to pay the $900 million it owes exchange customers. The email read: “We are writing to inform you that Gemini, acting as an agent on your behalf, has terminated the Master Loan Agreement (MLA) between you and Genesis Global Capital, LLC (Genesis), effective January 8, 2023.”
“This officially terminates the Earn Program and requires Genesis to return all assets outstanding in the program,” the company added. Existing redemption requests are unaffected and will continue to be fulfilled by Genesis.
As previously stated, the email stated that current redemptions will not be affected and that a resolution will be obtained for customers who wish to recover their assets.
What Has Genesis Got to Say?
A Genesis spokesperson said in a statement that the company disagrees with everything Gemini has to say. In addition, the spokesperson stated that Genesis is disappointed that Gemini is conducting a public media campaign despite ongoing productive private dialogue between the parties. This is a very comprehensive process that will take time, but we aim to move forward as quickly as possible. The Genesis credit division was shut down in November 2022 following the collapse of FTX.
This blocked funds from Gemini Earn users on the platform.