The FTX outbreak has caused significant damage to a great number of cryptocurrency exchanges, and it is thought that many more are on the verge of going bankrupt. The owners of these exchanges' funds are unable to withdraw their initial deposits.

Customers Will Be Repaid Through Gemini's Partnership with Genesis Global Capital

On November 22, Gemini made the announcement on its Twitter handle that it has began taking steps to ensure that users of its Earn platform receive their payments. As a result, the platform works together with Genesis Global Capital, in addition to doing so with its parent business, Digital Currency Group (DCG).

During this time, Genesis Capital is serving as Gemini's financing partner to make the Earn program a success. The information was revealed by the exchange stating the primary focus of its operations is to provide its Earn customers with the ability to withdraw their monies.

The fact that Genesis Capital and DCG are driven to fulfill the agreement is of the utmost importance. Users of Gemini's Earn platform are commended for their patience as the company works to satisfy customers' demands despite the challenges facing the cryptocurrency industry as a whole.

The company also guarantees that it will maintain its practice of providing regular and frequent updates to users while it works toward the goal of enabling those users to receive their returns. On the other hand, the reimbursement strategy only applies to the Earn product that Gemini offers; it does not cover any other investing instruments.

Gemini and a whole host of other crypto service providers have taken a significant hit as a result of the crisis due to the failure of the FTX exchange and the subsequent bankruptcy of the exchange. Because of this, the company has decided to implement several changes in order to lessen the effect that its exposure to FTX will have on its operations.

Gemini has assured its customers that any cash they have deposited with it are secure and will be made available for withdrawal at the appropriate time.

To Improve Its Financial Position, Genesis Seeks Additional Funding

In the meantime, the cryptocurrency lender Genesis Global Capital is looking to increase the amount of funds in its reserve so that it can improve its liquidity status and expand the range of services it provides to customers. Following the suspension of withdrawals, the company made the decision to seek the assistance of the investment bank Moelis Co. in order to assist it in reorganizing its business.

The company's acting chief executive officer, Derar Islim, disclosed to the company's clients in a note that the company is currently discussing the most recent development with its investors, creditors, and borrowers. As Islim has revealed, the expertise of Moelis is required in the coming days in order to assist in expanding and accelerating Genesis' strategy.

Genesis has had a difficult time securing additional funding for the better part of this month as it attempts to partner with a greater number of creditors following its exposure to FTX. The company's institutional lending arm has been forced to halt redemption and further borrowing over the past week after being pressured by the firm.

In addition, the troubled cryptocurrency exchange is said to have disclosed that the cryptocurrency lender had disclosed that it had close to $175 million in locked derivatives with the cryptocurrency lender. As a direct consequence of this development, DCG increased the amount of equity funds it had invested in Genesis by an additional 140 million dollars.

The information regarding the anticipated date of Genesis's repayment of its $575 million debt was disclosed by DCG on November 22.