Gemini, a crypto exchange and custodian founded by the Winklevoss brothers, has suffered many withdrawals as crypto firms grapple with the reverberations of the FTX-Alameda bankruptcy and the subsequent contagion within the digital asset industry.
Data from blockchain intelligence platform Nansen shows that Gemini saw $485 million in net outflows in the past 24 hours, the most among crypto exchanges. Outflows totaled $563 million, only offset by inflows of $78 million. Over the past seven days, Gemini has had net outflows of $682 million – the difference of $866 billion in inflows and $1.55 billion in inflows provided by Nansen – suggesting that most of the Wednesday withdrawals.
Digital asset balances on a crypto wallet identified as Gemini fell to $1.7 billion from about $2.2 billion a day ago, according to blockchain data platform Arkham Intelligence. Arkham and Nansen do not cover data from the Bitcoin blockchain and may not include all Gemini wallets.
The rush of withdrawals came as Gemini suspended withdrawals earlier Wednesday from its earnings-generating program. The lending unit of crypto investment bank Genesis Global Trading, which powered the program for Gemini, announced it was suspending customer redemptions, citing “mass market displacement” and “loss of confidence in the industry as a result of the pressure FTX”.
Read more: Genesis Crypto-Lending Unit Stops Customer Withdrawals After FTX Collapse
The exchange too suffered a break today, which was soon resolved but increased the fear of its stability.
Gemini had not returned CoinDesk’s request for comment at the time of publication. Earlier today, the firm said in a tweet that all assets deposited by customers are available for withdrawal at any time.
Fear of contagion looms
Crypto exchanges and lending firms have come under pressure to deal with the eruption of top exchange FTX and its corporate sister, trading firm Alameda Research.
Cautious investors have resisted moving digital assets off centralized exchanges amid “growing concerns about the solvency of other centralized exchanges,” crypto research firm Delphi Digital wrote in a report this week.
Binance, Coinbase, KuCoin all experienced large deposit withdrawals recently, according to Nansen data. Some smaller platforms, such as AAX, Liquid and lender Salt, have stopped withdrawals in the past few days.
Numerous exchanges tried to allay widespread fear by sharing their crypto holdings or publishing their pledges. A high-profile industry figures recommending presenting proof of reserves and conducting independent audits of crypto holdings on a regular basis.