Crypto Custodian Gemini Suffers $485M Rush of Outflows Amid FTX Crisis

Gemini, a crypto exchange and custodian, has suffered a rush of withdrawals as crypto firms wrestle with the reverberations of the FTX-Alameda bankruptcy and subsequent contagion within the digital asset industry.

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Data by blockchain intelligence platform Nansen showed that Gemini saw $485 million in net outflows in the past 24 hours, the largest among crypto exchanges. As reported, most of the withdrawals occurred on Wednesday.

Digital asset balances on crypto wallets identified as Gemini dropped 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's wallets.

The rush of withdrawals came as Gemini paused withdrawals earlier Wednesday from its yield-generating Earn program. The lending unit of crypto investment bank Genesis Global Trading, which powered the program for Gemini, announced that it was suspending customer redemptions citing "extreme market dislocation" and "loss of industry confidence caused by the FTX implosion."

The exchange also suffered an outage today, which was shortly resolved but exacerbated the fear about its stability.