FTX Crisis: What went wrong at Gemini Exchange today?
Users of the crypto exchange Gemini lost access to their crypto assets temporarily on Wednesday. This happened shortly after Gemini announced that it would temporarily stop its Earn product. However, it appears that there was a separate server problem. Gemini also warned customers that withdrawals from the Earn product could experience delays earlier today.
Gemini Faces Outage on All Platforms
Users around the world pointed out that they were not logged in to their accounts and that they couldn’t access certain parts of the app. As of 11:55 ET, the official status page for the exchange showed widespread outages.
It’s possible to call it coincidence or strange timing, but the outage occurred right after Gemini tweeted about disabling their Earn function. Investors panicked that Gemini would wind up because they were exposed to both Genesis AND FTX.
Read more: Genesis suspends customer withdrawals in wake of FTX collapse
Gemini later tweeted that it was just an “Amazon Web Services EBS downage”. Gemini assured users that their funds were safe and that they could withdraw as all services were up and running. Most services were restored as of 12:35 ET.
Gemini exchange is fully online. All customer funds on Gemini exchange are 1:1 and can be withdrawn at any time.
— Gemini (@Gemini) November 16, 2022
Gemini Earn is still closed to customers despite the fact that most of the outage was fixed. Genesis earlier today blamed “unprecedented markets turmoil” for the problems.
Genesis Fails After FTX Collapse
Gemini Earn stopped all withdrawals after prime broker Genesis stopped loan originations and customer redemptions in its lending business. Gemini Earn, the exchange’s yield-earning product, allows users to earn rewards on more than 40 cryptocurrencies.
Gemini issued a statement when it paused Gemini earn, which stated:
“We are aware of Genesis Global Capital, LLC (Genesis), the lending partner for the Earn program, which has halted withdrawals. We will not be in a position to meet customer redemptions within the five-day service-level agreement (SLA).
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