Gemini Trust Co. Accuses New York Post of Manipulation

Gemini Trust Co., a leading cryptocurrency exchange, recently expressed its disappointment and frustration over an article published in the New York Post. The company claims that the allegations made about its Earn Program are not only false but also a deliberate attempt to manipulate public opinion.

Gemini vs. New York Post Battle

In its article, the New York Post claimed that Gemini withdrew $282 million from Genesis Global, which had declared bankruptcy in August 2022. The article suggested that this situation was at best suspicious and potentially harmful to investors.

The article also negatively described the company and its founders, Cameron and Tyler Winklevoss, citing possible mismanagement of funds. In response to these allegations, Gemini issued a statement on its Gemini X platform to clarify the situation. The company vehemently denied any problems and clearly stated the nature of the funds in question.

According to Gemini, the $282 million withdrawn from Genesis in August 2022 does not belong to the company’s funds, nor to the personal funds of its founders or investment firms. Instead, it stated that the funds belong to users of the Gemini Earn program.

The exchange continued to accuse Barry Silbert and Digital Currency Group (DCG) of attempting to manipulate the public and create a deliberate scheme to distance themselves from their own manipulative behavior, which is currently under criminal investigation. Gemini claimed that the New York Post was fed a pre-packaged and fictional story by these parties.

Current Status of Gemini Earn

To fully understand the situation, it may be crucial to examine the Gemini Earn program and its terms. In a tweet, Gemini stated that the program allows Earn users to create a “liquidity reserve” to benefit them.

Gemini also announced that it decided to increase this liquidity reserve as a solution to the market turmoil experienced in the summer of 2022. As a result, on August 9, 2022, it withdrew $282 million of Earn users’ funds from Genesis and held them in the liquidity reserve to benefit the users’ future.

Gemini stated that increasing the liquidity reserve was a reasonable and prudent choice, and it protected Earn users from the consequences of Genesis’ bankruptcy when it halted redemptions on November 16, 2022.