Tether (USDT) Says It Has No Exposure to Exchange Gemini

Following the news making the round that Tether USDT is connected to the Institutional crypto lender Genesis Global or Gemini Earn program, the stablecoin issuer has dissociated itself from the two firms according to a post.

Tether Confirms Zero Exposure To Genesishttps://t.co/KHEx2HWoJ1

— Tether (@Tether_to) November 16, 2022

Recall that on November 16, Genesis Global halted withdrawals citing market volatility and its inability to meet unrelenting demand due to the liquidity crisis.

Our #1 priority is to serve our clients and preserve their assets. Therefore, in consultation with our professional financial advisors and counsel, we have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business.

— Genesis (@GenesisTrading) November 16, 2022

The decision has partly affected Gemini’s Earn cryptocurrency exchange program, which has revealed that it will not be able to process customer refunds for the next five business days.

In the meantime, Tether explicitly stated that it has sufficient reserves that can withstand any event that comes its way

It is noteworthy that Tether boasts as the largest stablecoin as well as the third-largest digital asset by market capitalization according to data from  CoinMarketCap. Although the digital asset lost its dollar peg on May 12 as a result of market turmoil, it has since stabilised.

It would be recalled that Tether in July hired BDO Italia and saddled it with the responsibility of carrying out monthly reviews to authenticate its reserves for public information.

Gemini Struggles

While Gemini exchange has assured its users that the Genesis Global crisis does not affect its product and services apart from Gemini Earn program, it appears the message was not reassuring enough as users troop out of the centralized exchange.

6/6 This does not impact any other Gemini products and services. Gemini is a full-reserve exchange and custodian. All customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time. You can read more here: https://t.co/jZz7AvmORG

— Gemini (@Gemini) November 16, 2022

According to data released by Crypto Quant, investors are leaving the Gemini exchange following the shutdown of the staking service.

Meanwhile, the exchange recorded an outage on Nov 16. citing an Amazon Web Services EBS outage that affected one of its primary databases.

At the time of writing, the exchange has announced service restoration, stating that all customer funds held on the Gemini exchange are held 1:1.

Gemini exchange fully back online; all customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time.

— Gemini (@Gemini) November 16, 2022