Several months before Genesis Global Holdco LLC, a crypto lender, filed for bankruptcy and stopped deposits, Gemini Trust Co., a crypto exchange, withdrew hundreds of millions of dollars from it, according to two sources who spoke on the condition of anonymity.
The two companies collaborated on a service called Earn, which allowed customers to earn interest on their crypto tokens by lending them through Genesis.
Gemini, which is owned by the Winklevoss twins, Tyler and Cameron, pulled out about $282 million in cryptocurrency from Genesis in August 2022, one of the sources said.
The New York Post first reported the withdrawal. The source said that Gemini used the funds to create a reserve that would enable customers to redeem their tokens instantly from Earn.
The source also said that none of the money went to the Winklevoss brothers personally.