Tether Says It Had No Exposure to Genesis Global and Gemini Earn, Crypto Experts Are Doubtful
Tether, the issuer of the major stablecoin USDT, denied having exposure to either Genesis Global Capital or Gemini Earn. Some, however, wonder how it is possible for such a large company not to be affected by any of the massive events that shook the crypto space this year.
The company said in an announcement that it was “operating business as usual,” claiming that,
“With recent news surrounding Genesis today, Tether would like to confirm that it has absolutely no exposure to Genesis or Gemini Earn.”
Tether coins, it added, are 100% backed by its reserves, while the assets backing the reserves exceed the liabilities. The company’s portfolio includes cash, cash equivalents, and US treasuries.
It stated that,
“It is important at a time like this to highlight that these reserves have proved tried and true demonstrating consistent resilience during the black swan events that have characterized the market this past year.”
As reported, the crypto lending division of Genesis Trading, Genesis Global Capital, which belongs to the Digital Currency Group (DCG), the parent company of Grayscale Investments, as well as crypto exchange Gemini are among the latest crypto victims of the FTX contagion.
Genesis announced on Wednesday that it was halting redemptions on its lending product and would stop making new loans. It claimed that Genesis’ trading and custody businesses remain unaffected.
Soon after, Gemini said it would be stopping redemptions on its Gemini Earn yield products. Genesis provides services to Gemini. “This does not impact any other Gemini products and services,” it said.
However, some doubt the type of statement issued by Tether, arguing that, given the extent of the Terra and FTX contagions, it’s nearly impossible to stay
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