“We are encouraged by Genesis’ and its parent company Digital Currency Group’s commitment to doing everything in their power to fulfill their obligations to customers under the Earn program,” they wrote avoiding making any commitments. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.”īack to Gemini’s statement, the company assures that things will go back to normal soon enough. Our #1 priority is to serve our clients and preserve their assets. “FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity. Of course, it all comes down to the disaster Sam Bankman-Fried brought forward. Earlier today, Bitcoinist quoted Genesis explaining their decision and how the situation looks from their end. We are working with the Genesis team to help customers redeem their funds from the Earn program as quickly as possible.” “We are aware that Genesis Global Capital, LLC (Genesis) - the lending partner of the Earn program - has paused withdrawals and will not be able to meet customer redemptions within the service-level agreement (SLA) of 5 business days. “They should also limit margin exposure to an amount low enough to avoid the risk of a margin call, unless they have cash on hand to cover the call.According to the Winklevoss twins’ PR team, the denial of service has to do with their partner Genesis Global Capital’s decisions. “Generally, no more than 5% to 10% of an individual’s entire investment portfolio should be invested in speculative investments such as margin, cryptocurrency, derivatives, or land,” Walsh says. If you can check all those boxes, Walsh says you may consider investing on margin-as long as you limit exposure to speculation and reduce the risks of margin calls. Remember: Margin trading isn’t allowed in retirement accounts, so aim to max out your tax-advantaged 401(k) or IRA before putting money in a margin account.
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