Investing
Crypto Contagion Entangles More Customer Cash
With Gemini freezing withdrawals on its yield product and other companies struggling, users with money in online platforms fear for their investments.
This article is for subscribers only.
As crypto companies falter, more retail money is getting trapped.
In the wake of FTX’s collapse, contagion is spreading across the industry. Crypto lender BlockFi, which has suspended customer withdrawals, is reportedly preparing to file for bankruptcy. Genesis announced Wednesday it was suspending redemptions and new loan originations at its lending business. That led Gemini Trust Co. — founded by the Winklevoss twins — to freeze withdrawals in its yield product, known as Gemini Earn, since Genesis was its partner in that program.