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FTX contagion hits Winklevoss twins as crypto lenders come under fire

By Yueqi Yang and Anna Irrera

16 Nov 2022 · 3 min read

Editor's Note

The shock waves caused by the collapse of crypto exchange FTX are threatening to engulf the industry, Bloomberg reports. If investors lose their confidence, there could be widespread retrenchment.

The fallout from the rapid collapse of Sam Bankman-Fried's FTX is spreading across the crypto world, ensnaring the billionaire Winklevoss twins through a liquidity squeeze at their lending partner, Genesis.

Genesis is suspending redemptions and new loan originations at its lending business after the unit faced withdrawal requests that exceeded current liquidity. Gemini Trust Co., founded by Cameron and Tyler Winklevoss, subsequently announced its yield product for retail investors will also halt redemptions as Genesis was a key partner in the program.

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