Other Fed services are still down, however.
#Gemini exchange outage zip#
Binance did not respond to a request for comment from Forkast.The Federal Reserve suffered a widespread disruption in multiple payment services Wednesday, including a system that banks and businesses rely on to zip trillions of dollars around the financial system each day.Īfter experiencing problems for several hours, the crucial payment system, known as Fedwire, resumed normal operations shortly before 3 p.m. B2C2 founder Max Boonen tweeted that the company “wishes to extend an offer to purchase loans from Genesis Trading’s book to alleviate the current liquidity shortfall.”īinance, the world’s biggest crypto exchange, may be considering a bid for Genesis’ loan assets, according to a Wednesday report from Blockworks that cited unnamed sources familiar with the matter. That was seemingly insufficient, with Genesis reportedly seeking a new loan of US$1 billion, according to a fundraising document cited by the Wall Street Journal on Friday.Īnother potential liquidity lifeline for Genesis appeared from UK-based financial services firm B2C2 Group on Wednesday. The collapse of Terra, which some argue is still rumbling through the industry and is linked to the FTX implosion, has triggered multiple bankruptcies and the fugitive Terra-Luna founder Kwon do-hyung is the subject of an Interpol Red Notice for his arrest.ĭigital Currency Group stepped in to provide an emergency US$140 million to Genesis the day FTX declared bankruptcy. Three Arrows fell victim like many other businesses at the time to the US$40 billion implosion of the Terra stablecoin and Luna cryptocurrency in May in which it had invested. It operates out of Stamford, Connecticut, in the U.S.ĭigital Currency Group had previously assumed liabilities for Genesis’s US$1.2 billion claim against bankrupt crypto hedge fund Three Arrows Capital in July. The company was founded in 2015 to focus on digital assets and has invested in dozens of crypto companies, according to its website. GOPAX said it had requested repayment of all assets belonging to GOFi account holders prior to Genesis’s announcement that it will freeze withdrawals.īillionaire Barry Silbert, 46, a former investment banker, runs Digital Currency Group, which lists seven main subsidiaries on its website, including Genesis and digital asset manager Grayscale, which oversees $28 billion worth of Bitcoin, Ether and other assets.
South Korea’s GOPAX exchange on Thursday halted withdrawals and interest payments from their GOFi service, which brokers products from Genesis Global Capital. On Thursday, blockchain analytics platform Nansen reported that Gemini saw US$570 million in net outflows over 24 hours, more than any other cryptocurrency exchange, according to Nansen data. Digital Currency Group is the second largest shareholder in GOPAX, the exchange said in an announcement.
The freeze by Genesis Capital quickly spread to its trading partners, such as the cryptocurrency exchange Gemini and South Korea’s GOPAX exchange. Genesis said the same day it had US$175 million locked in FTX accounts. The announcement makes it the latest crypto related business to face funding shortfalls after cryptocurrency exchange FTX went bankrupt on Nov.
New York-based Genesis Global Trading said its decision follows “abnormal withdrawal requests” which exceeded the current liquidity at Genesis Capital. Genesis Global Capital pays a yield to clients that deposit cryptocurrency on the platform and holds about US$2.8 billion in such deposits, according to its latest quarterly report through September.
The move is now rippling through the company’s multiple trading partners. Crypto investment bank Genesis Global Trading, owned by the venture capital Digital Currency Group, announced a pause in withdrawals of assets lent to the firm’s brokerage arm, Genesis Global Capital, on Wednesday.
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