In February 2021, at the height of the bull market, Gemini partnered with Genesis to create Gemini Earn, which offered clients up to 7.4% interest on their crypto deposits. In mid-November, Genesis suspended withdrawals given the FTX-induced market turmoil, freezing Gemini Earn funds in the process.
“This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion," Amanda Cowie, vice president of communications and marketing at DCG, said at the time. "This decision impacts the lending business at Genesis and does not affect Genesis’s trading or custody businesses. Importantly, this decision has no impact on the business operations of DCG and our other wholly owned subsidiaries."
Earlier reports pegged the value of the total amount owed to Gemini at $900 million, from a total of $1.8 billion owed to the creditors’ group.
Investment bank Houlihan Lokey has been retained as a financial adviser on behalf of the Creditor Committee, with law firm Proskauer Rose acting as counsel.