Gemini Earn Program Pausing Withdrawals

[OgNasty]

Gemini has posted that their Earn program partner Genesis Global Capital LLC has paused withdrawals. This seems like the latest domino to fall. Make sure to get your funds off of exchanges. Here’s their tweet thread on the situation.

https://twitter.com/gemini/status/1592873279232278532

Gemini has been saying everything was fine right up until this pausing of withdrawals, showing once again that when the exchange says everything is fine, get your money out ASAP! Don’t wait around for the next exchange to “pause” withdrawals.

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[Lucius]

All these warnings do not make much sense for the average user who just wants to trade and profit as often as possible, and only knows that through CEX. In the event that the majority decided to withdraw all their funds from CEX, I think that many of these companies would find themselves in big problems because they would not be able to meet all the demands of their clients - something similar to traditional banks.

I hope that some of our saviors will come out with some of their tweets and save us from a new dump

[crwth]

When an exchange starts to tweet about withdrawals and to reassure the public, it’s a two-way street because some loyal people would defend it and, of course, say that they are fine and going to have a better future, but then, on the other hand, the warnings that the exchanges gave us also grounds for possible problems in finance of that exchange which could lead to bankruptcy and the loss of your funds

Better be prepared and as the saying goes “it’s better to be safe than sorry”

[buwaytress]

Didn't Binance boss already tweet saying he's prepping a relief package for exchanges? I know Gemini's not one of the big boys these days but they've always been one of the old boys in crypto. At this point, am kind of glad even these big names falling now are already expected news, but I can't say I even dare to suggest what might happen if one of the names supposedly providing Proof of Reserves also signals it's ready to kick the bucket.

But the bright news for crypto holders... the massive crypto bank runs that have happened have more or less happened and been honoured, right? I mean we all here are sitting on solely-controlled coins, right?

[electronicash]

Didn't Binance boss already tweet saying he's prepping a relief package for exchanges? I know Gemini's not one of the big boys these days but they've always been one of the old boys in crypto. At this point, am kind of glad even these big names falling now are already expected news, but I can't say I even dare to suggest what might happen if one of the names supposedly providing Proof of Reserves also signals it's ready to kick the bucket.

But the bright news for crypto holders... the massive crypto bank runs that have happened have more or less happened and been honoured, right? I mean we all here are sitting on solely-controlled coins, right?

almost unbelievable that the twins are also insolvent,  are they?

because they've been very wealthy as early investors of BTC and of course every cycle they have the all the opportunity to accumulate from the panicked sellers. there seem to be no reason for them be like FTX. most of those dominos that halted withdrawals are base on US, does any body thinks they are mandated by US government to prep for auditing and regulation?

[OgNasty]

almost unbelievable that the twins are also insolvent,  are they?

The twins aren’t insolvent. They’re billionaires. Gemini is fine also as far as I’m aware. The problem was their partner Genesis which ran their Earn program. Genesis doesn’t have the liquidity to pay out earn users, so that’s where the problem lies. Funds held on Gemini are safe (supposedly) but any funds given to Genesis to lend out for interest are frozen while Genesis looks for someone to bail them out. Hopefully this is a true delay scenario and not a precursor to bankruptcy but we’ll have to wait and hear what news comes out.

[m2017]

Maybe Gemini paused the withdrawal from their exchange because it fears panic and doesn't want users to withdraw their money, which means that the exchange will not receive any profit? In any case, this is a wake-up call for users of exchanges, because their funds are either already frozen indefinitely, or this will happen in the near future. In the first case, there is nothing left but to wait, and in the second, on the contrary, to hurry. Hurry up to get yours. The fact that "not your keys-not your coins" was repeated by many for many many years and until the problem arose, no one cared about it. Now, when this incident happened, everyone ran sharply in the hope of picking up their crypto. The unpleasant fact is that it was necessary to foresee this earlier and prepare, having secured their money.

[adaseb]

Yes I remember a few years ago someone I know personally asked me about this. I read the terms and found it odd how it says basically "Your funds won't be on Gemini and can't be insured against loss since they will be with a 3rd party". Then it said something like "We vouched for this 3rd party and trust them".

And basically told them, its NOT RISK FREE and just avoid. Back then the yield was crazy high so it was attractive since banks were paying like 0% interest. I remember you could of done a "cash and carry" trade with the bitcoin/ethereum front months and made like 3-5% PER MONTH!

Yields were crazy high back then and I am not surprised many invested their money this way.

[OgNasty]

Yes I remember a few years ago someone I know personally asked me about this. I read the terms and found it odd how it says basically "Your funds won't be on Gemini and can't be insured against loss since they will be with a 3rd party". Then it said something like "We vouched for this 3rd party and trust them".

And basically told them, its NOT RISK FREE and just avoid. Back then the yield was crazy high so it was attractive since banks were paying like 0% interest. I remember you could of done a "cash and carry" trade with the bitcoin/ethereum front months and made like 3-5% PER MONTH!

Yields were crazy high back then and I am not surprised many invested their money this way.

Ya, it was crazy that when you sign up they basically tell you that they can take all your crypto and there's nothing you can do about it.  I'll admit I still dove in with some crypto and cash to enjoy that return.  I did however remove all my funds at the first sign of trouble and managed to beat this announcement and get all of my funds off the earn platform.  I thought I had lucked out and my paranoia about the crypto market had paid off once again (I learned my lesson after mtgox).  However, now I have received an email from Gemini that they have closed my account and disabled trading...  I'm not sure if I'm caught up in something or if it's against Gemini's rules to not have your money stolen using their platform, but hopefully I'm able to resolve it or else it's back to Kraken or Coinbase for trading and I had really preferred Gemini. 

[vapourminer]

Yes I remember a few years ago someone I know personally asked me about this. I read the terms and found it odd how it says basically "Your funds won't be on Gemini and can't be insured against loss since they will be with a 3rd party". Then it said something like "We vouched for this 3rd party and trust them".

And basically told them, its NOT RISK FREE and just avoid. Back then the yield was crazy high so it was attractive since banks were paying like 0% interest. I remember you could of done a "cash and carry" trade with the bitcoin/ethereum front months and made like 3-5% PER MONTH!

Yields were crazy high back then and I am not surprised many invested their money this way.

Ya, it was crazy that when you sign up they basically tell you that they can take all your crypto and there's nothing you can do about it.  I'll admit I still dove in with some crypto and cash to enjoy that return.  I did however remove all my funds at the first sign of trouble and managed to beat this announcement and get all of my funds off the earn platform.  I thought I had lucked out and my paranoia about the crypto market had paid off once again (I learned my lesson after mtgox).  However, now I have received an email from Gemini that they have closed my account and disabled trading...  I'm not sure if I'm caught up in something or if it's against Gemini's rules to not have your money stolen using their platform, but hopefully I'm able to resolve it or else it's back to Kraken or Coinbase for trading and I had really preferred Gemini. 

i too had stuff in gemini earn and like you i pulled all the earn stuff out when luna/terra started going down a while back. more recently i also xfered most of my coin out of gemini to my hardware wallet.

ngl this contagion shit sucks pond water.

edit: just checked gemini it allowed me to xfer btc to my whitelisted addy. so its ok for me.

[OgNasty]

edit: just checked gemini it allowed me to xfer btc to my whitelisted addy. so its ok for me.

Ya, I was able to remove nearly everything but I did have a small amount of DOGE that I need to get help setting a withdrawal address for and their customer service seems overwhelmed and giving blanket responses that aren’t helpful. I also had a small amount of ETH staked and they are telling me they won’t do anything about and I can contact them when it can be unstaked on the network. I can only imagine how difficult that is going to be or if I’ll even remember. Seems shady. The worst part is I wasn’t given a reason.

[Hamphser]

All these warnings do not make much sense for the average user who just wants to trade and profit as often as possible, and only knows that through CEX. In the event that the majority decided to withdraw all their funds from CEX, I think that many of these companies would find themselves in big problems because they would not be able to meet all the demands of their clients - something similar to traditional banks.

I hope that some of our saviors will come out with some of their tweets and save us from a new dump

Which is something that i have done on the first place where i dont really have to mind about these exchange issues when it comes to not your keys not your coins kind of sayings,even though i do deal up with trading actively which is really that true that it wont really be that much a worrisome scenario since you could always pull off your funds.

Now after that FTX disaster + this very bearish market + all around fuds.Then pretty much sure it would really be creating that kind of domino effect which these scenarios or
events arent that shocking anymore.Im expecting something more to happen and most likely we would really be dumping even more.

This isnt something new on this market on where situations like this could happen anytime.This is why its wise to pull off those parked coins on exchangers which are sitting to wait
up for some interest and its better to mind off the risk on the time you had put it in there.

[adaseb]

If you go to the Gemini Reddit there are many people who are in the same situation as Ognasty. Basically they had an old KYC account and then all of a sudden they get an email that it’s closed, and no reason why.

There are also many that are mad at Gemini for causing this mess and wants the twins to dive into their large Bitcoin stash and make it right for their loyal customers, wonder what they will do.

[lizarder]

Social media is also excited because 526.1 Billion Crypto pension funds were stolen. IRA Financial Trust, which maintains individual accounts in non-traditional assets such as Bitcoin, has started filing a lawsuit against the Gemini exchange, although its owners have clarified the issues they are facing. Even worse, IRA Financial accused the gemini exchange system of failing to freeze accounts within the timeframe following the incident.

So far there hasn't been a major impact on exchanges, as they have made it clear what responsibilities they will undertake. Although this news was released last June and it looks like it will be quite horrible news for some time to come.
Source
1. https://www.dkliknews.com/ekonomi-bisnis/amp/pr-3485696961/krisis-ftx-apa-yang-salah-di-bursa-gemini-hari-ini
2. https://m.liputan6.com/crypto/read/4985486/dana-pensiun-kripto-rp-5261-miliar-dicuri-corporation-ini-tuntut-pertukaran-gemini