Gemini AND Genesis Suspend Withdrawals | Crypto Contagion SPREADS

hey everyone me Kevin here this is not

what we needed but more pain for the

crypto space and hopefully for Sam

bankman freed uh that guy might be

getting sent to the United States for

questioning uh Bahamian authorities

would obviously cooperate with the

United States in uh extra I mean sending

him over to the United States so we'll

see how that goes but take a look what

we just heard from Genesis Genesis just

tweeted we recognize here let's turn

this sideways we'll see it a little

larger all right Genesis is saying we

recognize how challenging this past week

has been due to the recent impact of the

FTX news at Genesis we are entirely

focused on doing everything we can to

serve our clients and navigate this

difficult market and environment Genesis

spot and derivatives trading and custody

business remains fully operational but

wait for it we continue to support our

clients relying on US during volatile

market conditions and manage their risk

and execute their business strategies

keep in mind that on one point last year

probably on a quarterly basis Q4 they

were doing somewhere around 300 million

dollars of volume a day that's that's

quite remarkable and that's that's a

rough estimate based on some numbers

that we could see from their January

reports uh but uh you know those volume

numbers have probably halved to to maybe

even Fallen by 70 80 percent by now but

that's still still substantial I mean

even if you were at 300 million a day

even if today you're at a hundred

million dollars a day it's still a

pretty decently large exchange and so

what's happened so again before they get

into it they're emphasizing that don't

worry everything is fine regarding your

ability to trade however FTX has created

unprecedented Market turmoil resulting

in here we go abnormal withdrawal

requests which have exceeded our current

liquidity our number one priority is to

serve our client ants and preserve their

assets therefore in consultation with

our professional Finance advisors and

Council legal counsel that is we have

taken the difficult decision to

temporarily dis suspend redemptions it's

always temporary it always starts as

temporary that's how it goes they they

freeze withdrawals freeze your ability

to get your money off of the platforms

and then what happens you're stuck

because they end up going bankrupt now

this is for their earned product

uh We've hired the best advisors we plan

to explore all possible options which

obviously could include bankruptcy we

don't know if that's going to be the

case here but uh you know that certainly

is the case given that blockify is now

filed for bankruptcy protection FTX we

already know filed for bankruptcy

protection I mean it's just one after

another right now now Genesis is a firm

that had about 2.4 billion dollars of

exposure to the 3ac disaster that was

many months ago though right that was

earlier this year so so hopefully

they've gotten past that but they did

just have to take about 140 million

dollar Equity infusion from their parent

company probably because they're just

straight up out of money we appreciate

our clients patience and resilience blah

blah blah all right so not so great but

another thing to know is that the

company that does a lot of lending for

Genesis or lends money to Genesis is

actually Gemini a simple way to

understand this is Gemini basically

through your authorization takes the

stuff that you say yes please lend it

out to other people and then lends it to

companies like genesis well if Genesis

is having problems then the money in

that earn program could be at risk and

you could lose your money and that

earned program whether you're at Genesis

or Gemini and this is why according to

Bloomberg both platforms are now

limiting withdrawals from the earn

program now the sad thing about Gemini

is Gemini is one of those that has

institutional faith and a lot out of it

and the fact that now we're seeing one

part of the Gemini platform frees up is

a sign that this cauldron of a disaster

in crypto is just getting started and

things could get a lot worse especially

since once institutional trust gets

shaken at companies which are deemed

Untouchable or impenetrably uh secure

like Gemini then you really start having

pain in the crypto Market as potentially

institutions become fearful remember not

your keys not your crypto so the best

thing and this is what's actually

leading to a lot of these issues in my

opinion is get your money out of these

programs get your money out of these

yield driving programs get your money

out of stable coins get your cash out of

these platforms and get your coins your

crypto if you have any off the exchanges

that way you're not subject to being

clawed into these bankruptcy disasters

now again so far are it's only Gemini

urn and the Genesis earned program that

is withdraw or limiting withdrawals I

expect that will spread now let's get

another update from Sam bankman freed

while I go through some of these updates

I just want you to of course remember

one very important thing that obviously

you watch Finance videos to build your

wealth and in my opinion there's no

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licensed financial advisor and this is

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invested in real estate if your net

worth is under 500k start with real

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maybe you use a Roth or something in the

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does Sam bankman freed tell us he says

to the best of his knowledge as of uh

his posts on November 7th Alameda which

is in his investing company had more

assets than liabilities yeah maybe but

but the thing that happens is when the

crypto companies start collapsing your

investment firm Alameda has to start

writing down Mark to Market losses and

the value of your not liquid Investments

could actually be plummeting below your

uh below the uh level of your

liabilities and then you're upside down

that's why Bloomberg has written Alameda

down to a value of zero and some argue

it's it should be negative now Sam

bangman freed says his goal is to do

right by customers he had a nice puff

piece written in the New York Times a

lot of people on Twitter are very upset

about that and he says his goal is to

come clean focus on transparency but

here are some things that are

interesting a few weeks ago FTX was

handling 10 billion dollars a day of

volume and and billions of dollars of

transfers now remember what I said

earlier at it's a Heyday maybe you had

somewhere around a hundred a million to

300 million dollars of transactions per

day at Genesis binance today sits around

14.5 billion dollars per day so when Sam

bankman freed says FTX was sitting

around 10 billion dollars a day these

freaking people were huge I mean this

company was huge I mean this was one of

the the top two exchanges it's insane

how much volume they they had and it's

so incredible to see someone like Sam

bankman freed screw it up so badly and

it's just it's it's disgusting and

certainly smells very and extremely

fraudulent especially with how many

people are going to be losing money here

I think this person deserves to be

sitting next to Bernie Madoff

oh so frustrating but anyway he argues

there was too much leverage more than I

realized it's like is he the only one

working there it's ridiculous a run on

the bank and market crash exhausted

liquidity so what can I do raise

liquidity make customers whole and

restart maybe I'll fail you know people

are laughing at him on Wall Street for

trying to raise money I don't think he's

going to be able to raise much money

people are not very happy but anyway

whether or not you believe his numbers

here Sam bankman freed has been looking

to raise somewhere around 8 billion

dollars that's probably what he needs to

bail everyone out and restart

I don't see it happening anyway again

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see in the next one good luck