Staggering amount of Bitcoin has been moved off Gemini as investors and traders have been alerted
Dylan LeClair, a senior analyst at UTXO Management and founder of 21stparadigm, has spread the word that 25,000 bitcoins belonging to the Winklevoss twins have been removed from the Gemini exchange. That’s almost half a billion USD – a staggering $418,775,000.
That was 13% of all the Bitcoin stored on Gemini.
The massive money outflow happened after the Gemini Earn platform halted withdrawals following the same move by its lending partner, Genesis Global Capital. The latter is affiliated with the Digital Currency Group founded by crypto billionaire Barry Silbert.
Digital Currency Group comments on Genesis situation
Digital Currency Group (DCG) commented on the situation with Genesis. Its official Twitter handle stated that the decision to halt withdrawals was made due to the “the extreme market dislocation and loss of industry confidence caused by the FTX Implosion.”
He also tweeted that any outcome is limited to Genesis lending only and will not affect the trading or custody services offered by this company. Furthermore, DCG assures readers that this situation is of a temporary nature and will not affect DCG itself or any of its subsidiaries in any way.
“Investors are spooked”
LeClair mentioned that investors were alerted after Gemini Earn paused withdrawals and then Gemini exchange followed suit. Gemini keeps telling everyone that its Earn program does not use the custodial service of the platform.
Analysts do not believe that Gemini is going to go bankrupt. However, he says that people have become fearful after the collapse of FTX and are losing trust in exchanges at the moment, regardless of their reputation and status. He said that this reaction is justified.
