Gemini Exchange Faces a Rush of Withdrawals After The Firm Halted its Services Temporarily
Gemini Exchange Faces a Rush of Withdrawals After The Firm Halted its Services Temporarily.
Since the FTX-Alameda bankruptcy and subsequent contagion within the digital asset industry, the Winklevoss brothers’ Gemini exchange has seen a rush of withdrawals.
Gemini recorded $485 million in net outflows in the last 24 hours
Gemini paused withdrawals from its yield-generating Earn program earlier Wednesday, leading to the rush of withdrawals.
Genesis Global Trading, which operated the Gemini program, suspended customer redemptions in response to “extreme market dislocation” and “loss of industry confidence.”
“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,” Gemini said on Twitter.
1/6 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. https://t.co/9e48pF3Ymn
— Gemini (@Gemini) November 16, 2022
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A recent report by blockchain intelligence platform Nansen shows Gemini’s net outflows to have been $485 million in the past 24 hours, the largest among crypto exchanges. There were $563 million in outflows, but only $78 million in inflows.
A total of $682 million in net withdrawals have occurred in Gemini in the past seven days – the difference between $866 billion in inflows and $1.55 billion in inflows from Nansen – which indicates most of the withdrawals occurred on Wednesday.
Suffering from temporary outage
Following an announcement that Earn was being paused, Gemini users temporarily lost access to the exchange on Wednesday.
An error message saying “undergoing maintenance” appeared around 11:30 am ET on Wednesday for users trying to sign up for Gemini’s exchange or access its exchange.
It appears users were logged out of their accounts as of 11:55 a.m. ET, but services returned to normal around 12:40 p.m. ET, according to people familiar with the matter.
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“We experienced an Amazon Web Services EBS outage with one of our primary databases. We have restored the database and are bringing the exchange back up,” said Gemini.
The post received several comments from users who asked when they could withdraw their funds.
Please let us know when withdrawals will be available.
I can get into the site now but cannot withdrawal yet. I think you all have the yellow mark on the status of your site's different functions which appears to be a pending a resolution.— Michael Adams (@BroMichael87) November 16, 2022
“Please let us know when withdrawals will be available. I can get into the site now but cannot withdrawal yet. I think you all have the yellow mark on the status of your site’s different functions which appears to be a pending a resolution,” said one Twitter user.
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