If they do, I would be very pleasantly surprised. Nobody’s buying what you’re selling, and certainly Gemini won’t. As a driver, you know the risks, as you should know the risks of entrusting your money, and consciously withdrawing them from your Gemini account.įuck out of here with your bullshit. “Oh, sorry officer, I didn’t know the speed limit was 55MPH, so I was doing 180MPH because I wanted to feel the rush” … Guess what, you’re going to get arrested. Tell that to the police when they stop you for speeding, and see how well you fare. That’s just simply not how any of this works.

You fucked up though, and so did the rest of the people entrusting their keys to a third party. You just can’t have your cake and eat it too. You were very happy when you were receiving between 6-12% on your Bitcoin … much like those folks renting out their leased cars were enjoying their extra income. But to think that Gemini is going to be held responsible for it, is absurd. I’m not here advocating for fraud, fuck Genesis, FTX, Alameda, and all the rest. This is crypto, yes, we’re still early and this IS the wild west. You knew the liabilities stood with you, and you knew not to put your entire net worth into this. This is like saying you leased a car, rented it via one of those peer to peer rental companies that run much like AirBnB, having your car beat to shit, or better yet, totaled, and then not expecting that the dealership not to charge you for all the damages when you return the lease. Genesis is a third party, plain and simple. No risk at all for Gemini in either scenario. Apparently other lending programs offered loans but had some risk mitigation in the form of collateral. The whole damn crypto space got fleeced by SBF.Įdit: I'm not sure what Gemini was thinking (beyond profit of course) when it decided it would be a wise move to offer Earn in its current form. There's a question of due diligence on Gemini's side in terms of vetting and other research done into Genesis, however, I don't think it will matter much at this point. everyone read the risks that you could lose your shirt doing this, so I think the case against them is weak. In any event, government regulators mostly care about fining these organizations, not making sure that people are refunded. The Winklevoss twins won't make anybody whole unless they would face jail time. It is overly optimistic to think that we will be bailed out if Genesis goes under. If Genesis manages to refund a lot of earns customers, then this is a moot point. We don't know what is going to happen yet. If those statements were inaccurate and fraudulent (outside of any T&C click through when entering Earn), then they induced persons, including myself to stay in the program by misrepresenting financial position.įix this nonsense, because it will spiral to everything if retail customers are left hanging!! The statements made by Genesis/DCG limiting exposure to FTX/Alameda to $7M + $175 in derivatives should not effect retail customers, outside of 5 day SLA return of funds. If the retail portion of this equation is not resolved, I will dust off my law degree and sue everyone involved!! I'm fine if principal isn't returned in SLA 5 days - but if anything goes to bankruptcy, etc., I will be pissed! Someone step in now for $700M to $1B, or everything in crypto gets f*d!!! Now is time for CZ fund to resolve at least the retail portion of the loans outstanding.

Ultimately if the loans aren't 100% bad, the principal should have been easily returned - but I realize bank runs creates liquidity issues if loan terms are longer than short term retail investors can stomach. I'm aware of the difference between liquidity issues and insolvency issues - I kept money in Gemini Earn because I didn't want to add to the hysteria - as 'bank runs' help no one. And the reason that most interest/earn/grow type products were halted. This is exactly the shit that 'over protective' anti-crypto peeps like Elizabeth Warren are warning about.

but if you are screwing over retail investors with their life savings involved to earn some relatively low interest to combat inflation - and giving them a 1 click T&C disclosure on a bank 'interest like' product - you are ripe for the largest lawsuit ever. If hedge funds were hedging and leveraging, so be it - let them take a loss. Regardless of 'one click T&C' notifications, Gemini, Genesis and DCG are all on the hook for this mess. In the grand scheme of things, $700M Earn exposure is nothing, like 7 hedge fund executive homes or allowances of a few Saudi princes who don't want to live in a restrictive country.

Gemini earn gusd