The contagion effects around the collapse of FTX still cannot be gauged. The close ties within the crypto industry have caused even a reputable exchange like Gemini to run into trouble with withdrawals.
Genesis Global Capital, an institutional crypto lender, informed yesterday that it is “temporarily” suspending redemptions and new loan originations in its lending business. As a result, Gemini was also forced to pause its Earn program withdrawals, as Genesis Global is the lending partner.
In particular, the very awkward timing of a server outage, a few hours after the announcement, set alarm bells ringing in the crypto community.