Crypto exchange Gemini commented on an article published by the New York Post (NY Post), in which the publication called Gemini's actions in withdrawing funds from Genesis prior to its bankruptcy "questionable."
The New York Post wrote in its article that Gemini secretly withdrew $282 million from bankrupt Genesis Global in August 2022, implying that the move was questionable at best and casting the exchange and its founders, Cameron and Tyler Winklevoss, in a negative light, CoinGape reported.
In response to these allegations, Gemini took to its X (Twitter) page to criticize the information published in the NY Post and clarify its actions and the nature of the funds.
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Gemini said that the $282 million withdrawn from Genesis in August 2022 was money from users of the Gemini Earn program, not corporate or personal funds from the founders.
On August 9, 2022, the company withdrew $282 million in Earn user funds from Genesis and held those funds in a liquidity reserve for the benefit of the program's clients due to the market turmoil in the summer of 2022.
The exchange emphasized that increasing the liquidity reserve was an important decision because it helped protect Earn users from the negative impact of Genesis when the company stopped payments on November 16, 2022.
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