Is Gemini crypto exchange in jeopardy?

share to other networks share to twitter share to facebook
Gemini

The recent FTX-Alameda collapse has spread fear across the crypto industry.

On November 16, Gemini cryptocurrency exchange took to Twitter to announce that its Gemini Earn programme will be halting withdrawals.

Advertisement

Soon after the announcement was made, the exchange went offline temporarily, allowing bankruptcy rumours to gain momentum.

Gemini provides users with clarifications

On November 16, cryptocurrency exchange Gemini went offline briefly before returning later that day.

It seems that Gemini's website going offline was an unfortunate incident that came at the wrong time. The exchange took to Twitter to reassure its users, adding that their funds are safe and secure.

Advertisement

The exchange had earlier announced that it will be halting withdrawals from Gemini Earn. Gemini users and crypto speculators believed Gemini might be in trouble and that a potential bankruptcy may be on the cards.

Fears of additional bankrupt exchanges following the FTX-Alameda collapse are widespread, prompting consumers to assume the worst in every case.

Advertisement

Gemini's recent network outage startled its investors and users, who thought that the exchange might be battling some sort of liquidity crisis.

Genesis Global announces exposure to FTX

Despite unfortunate timing, Genesis Global Capital announced earlier today that it had significant exposure to the FTX crypto exchange.

Advertisement

In response to the news, several crypto firms and companies came forward to make statements about their exposure.

Interestingly, stablecoin issuer Tether announced that it has "absolutely no Genesis or Gemini Earn" exposure. Canadian crypto lender Ledn also said that it had no "exposure to Genesis Global Capital."

Crypto exchange Coinbase issued a similar statement via Twitter, adding that it had zero exposure to Genesis Global Capital.

Get the latest on FTX, Binance and other cryptocurrency exchanges.