FTX incident spreads to Genesis, U.S. exchange Gemini faces a run on funds, with nearly $1 billion withdrawn in a single day

FTX has gone bankrupt, and the lending platform Genesis claims to be affected and has temporarily suspended withdrawals. Following this, the U.S. exchange Gemini also stated that its yield product "Gemini Earn" is in partnership with Genesis, and therefore needs to halt withdrawals as well. Gemini emphasizes that its other services are operating normally, but nearly $1 billion has flowed out within 24 hours.

Genesis Encounters Issues Again

On 11/16, the institutional-focused crypto lending platform Genesis announced a suspension of redemptions and loan services due to the impact from FTX.

According to Genesis' Q3 report, a total of $8.4 billion in loans were issued in Q3, with $2.8 billion still outstanding.

Prior to this, Genesis also faced a $1.2 billion claim from 3AC related to Three Arrows Capital debt.

Gemini Faces Withdrawal Rush

In a 11/16 announcement, Gemini stated that withdrawals have been temporarily suspended due to one of their revenue products, "Gemini Earn," having Genesis as a partner.

Gemini emphasized that this does not affect other services such as staking, custody, trading, etc., and all user funds are held 1:1 and can be withdrawn at any time.

The crypto community, The Data Nerd, referenced Nansen data in a tweet, showing that Gemini has seen outflows of $850 million in the past 24 hours.

Among these outflows, stablecoins amounted to $230 million, followed by 37,000 BTC worth $370 million, and 200,000 ETH worth $250 million.