In a recent turn of events, Gemini Trust Co., a prominent American crypto trading firm, has publicly expressed its discontent with the New York Post’s portrayal of its now-defunct Earn program. The exchange has taken a firm stance against what it describes as misleading and potentially manipulative reporting by the newspaper.
The controversy surrounding the Earn program
The New York Post’s coverage of the Earn program has stirred significant controversy in the crypto community. The newspaper reported that Gemini had withdrawn a staggering $282 million from the now-insolvent Genesis Global in August 2022. This action, as insinuated by the Post, raised eyebrows and was deemed questionable, hinting at potential mismanagement of funds. The report went further to paint a rather unflattering picture of the company and its co-founders, Cameron and Tyler Winklevoss.
Reacting to these claims, Gemini took to the X platform to clarify its position and rectify the misconceptions. The company was quick to refute any allegations of misconduct. They emphasized that the $282 million in question was neither corporate funds nor the personal assets of the Winklevoss twins or their investment firm. Instead, it was the accumulated funds of the users of the Gemini Earn program.
Gemini’s accusations against Barry Silbert and DCG
The plot thickens as Gemini points fingers at Barry Silbert and the Digital Currency Group (DCG). The exchange accused them of being the masterminds behind a calculated attempt to sway public opinion. According to Gemini, this was a strategic move to divert attention from their own questionable activities, which are currently under a criminal probe. The crypto exchange went as far as suggesting that the New York Post might have been handed a fabricated narrative by these entities, leading to the controversial report.
Delving deeper into the Gemini Earn program
To grasp the full scope of the situation, one must delve into the intricacies of the Gemini Earn program. The company took to social media to shed light on the program’s mechanics, emphasizing its establishment of a “liquidity reserve” designed to benefit its users.
In the tumultuous summer of 2022, the crypto market experienced significant volatility. In response to these market dynamics, Gemini made the strategic decision to bolster this liquidity reserve. This move saw the company retracting $282 million of its Earn users’ funds from Genesis on August 9, 2022. These funds were then held in the liquidity reserve, ensuring the protection and benefit of its users.
Gemini’s decision to enhance the liquidity reserve was portrayed as both judicious and timely. This proactive measure ensured that Earn users were insulated from significant exposure to Genesis, especially when the latter halted redemptions on November 16, 2022.
Conclusion
The crypto world is no stranger to controversies, and the recent allegations against Gemini by the New York Post are a testament to that. However, as with all stories, there are multiple facets to consider. Gemini’s swift response and clarification on the matter highlight the importance of accurate reporting and the potential repercussions of misinformation in the ever-evolving world of cryptocurrency. As the saga unfolds, it serves as a reminder for all stakeholders to approach such reports with a discerning eye and to seek out the truth from credible sources.
