Alex Valaitis (the Layer-1 guy)
Alex Valaitis (the Layer-1 guy) 1 minutes reading from Bitcoin

Breaking: CeFi Exchange Holds Customers Withdrawals…And They Aren’t All Bad

🚨@GenesisTrading is halting customer withdrawals

Genesis is owned by @DCGco which also owns @Grayscale

Grayscale holds 11 billion BTC as part of its trust 😬

@GenesisTrading @DCGco @Grayscale Another interesting wrinkle in this development:

The news was first reported by @CoinDesk which is also owned by @DCGco.

Feels unlikely that they would report on this if not serious.

Serious question:

When was the last time a CeFi exchange or lender, paused customer withdrawals and didn't end up going insolvent?

Important added context:

Right now this is just impacting Genesis lending and not the trading desk.

Update: @Gemini earn program also impacted, since Genesis is a lending partner

Gemini on Twitter
This post is based on this twitter thread.


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