Gemini Trust Co., a leading crypto exchange has expressed disappointment and frustration with a recent New York Post’s reporting, asserting that the story it peddled with respect to its Earn Program was not only inaccurate but also a deliberate attempt to manipulate public opinion.
The Allegations
The New York Post reported that Gemini withdrew $282 million from the now-bankrupt Genesis Global in August 2022, insinuating that this action was questionable at best and potentially harmful to investors.
Furthermore, the story hinted at possible mismanagement of funds and portrayed the company and its founders, Cameron and Tyler Winklevoss, in a negative light. In response to these allegations, Gemini took to the X platform to set the record straight. The company vehemently denied any wrongdoing and clarified the nature of the funds in question.
According to Gemini, the $282 million withdrawn from Genesis in August 2022 was not corporate funds nor the personal funds of its founders or their investment firm. Instead, revealed that it was the money belonging to users of the Gemini Earn program.
The exchange went on to accuse Barry Silbert and Digital Currency Group (DCG) of orchestrating a deliberate attempt to manipulate public opinion and distract from their own fraudulent behavior, which is currently under criminal investigation. Gemini suggested that the New York Post had been fed a pre-packaged and fictional story by these parties.
Gemini Sheds Further Light on the Earn Program
To understand the situation fully, it’s crucial to examine the Gemini Earn program and its terms. Gemini highlighted in the tweet that the program allowed it to establish a “liquidity reserve” to benefit Earn users.
In response to market turmoil during the summer of 2022, Gemini stated that it decided to increase this liquidity reserve. As a result, it pulled back $282 million of Earn users’ funds from Genesis on August 9, 2022, and held these funds in the liquidity reserve for the benefit of users.
Gemini stated that increasing the liquidity reserve was a reasonable and prudent option, noting that it shielded Earn users from major exposure to Genesis when it ceased redemptions on November 16, 2022.
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