Cryptocurrency exchange Gemini has denied reports that J.P. Morgan Chase has ended their banking relationship.
“Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan,” Gemini said Wednesday (March 8) in a post on Twitter.
Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.
— Gemini (@Gemini) March 8, 2023
Reuters reported Wednesday that J.P. Morgan Chase is cutting off its banking relationship with Gemini, citing an unnamed source who is “familiar with the situation.”
J.P. Morgan Chase did not immediately reply to PYMNTS’ request for comment.
The Reuters report said the move by J.P. Morgan Chase comes as crypto markets have been shaken by recent events that include Silvergate Capital, a lender in the digital asset industry, cautioning that it may not be able to continue as a going concern, analysts observing that there are fewer options for crypto firms to find banking partners in the United States, and regulators telling banks to be careful in their dealings with crypto clients.
Silvergate Capital said in a March 1 filing with the Securities and Exchange Commission (SEC) that it is delaying its annual report as it examines “certain regulatory and other inquiries and investigations that are pending with respect to the company.”
The filing references “investigations from our banking regulators, congressional inquiries and investigations from the U.S. Department of Justice.”
The outcome of these events could impact Silvergate’s ability to “continue as a going concern for the twelve months following the issuance of its financial statements,” the filing said.
By the following day, March 2, four crypto-related firms — including Gemini — said they are cutting ties with Silvergate Capital.
In addition to Gemini, these firms include cryptocurrency exchange Coinbase, peer-to-peer (P2P) payments technology firm and USDC stablecoin manager Circle and blockchain infrastructure platform Paxos.
Gemini said at the time in a post on Twitter: “We maintain relationships with several banking partners. We are sensitive to the concerns around Silvergate and are in the process of unwinding certain services with them and notifying customers.”
1/ We maintain relationships with several banking partners. We are sensitive to the concerns around Silvergate and are in the process of unwinding certain services with them and notifying customers. Otherwise, all Circle services, including USDC are operating as normal.
— Circle (@circle) March 2, 2023
Among those who have cautioned banks about their relationships with crypto companies is Federal Reserve Board Governor Christopher Waller, who said Feb. 10 that banks must approach crypto customers in the same “safe and sound” manner they generally employ.
“As with any customer in any industry, a bank engaging with crypto customers would have to be very clear about the customers’ business models, risk management systems and corporate governance structures to ensure that the bank is not left holding the bag if there is a crypto meltdown,” Waller said at the time.
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FAQs
Cryptocurrency exchange Gemini has denied reports that J.P. Morgan Chase has ended their banking relationship. “Despite reporting to the contrary, Gemini's banking relationship remains intact with JPMorgan,” Gemini said Wednesday (March 8) in a post on Twitter.
Did JP Morgan end banking relationship with Gemini crypto exchange? ›
10 Years of Decentralizing the Future
U.S. banking giant JPMorgan (JPM) is ending its banking relationship with Gemini, the cryptocurrency exchange owned by Cameron and Tyler Winklevoss, according to a person familiar with the situation.
Does Chase work with Gemini? ›
March 8 (Reuters) - JPMorgan Chase & Co (JPM. N) , opens new tab is cutting ties with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, according to a source familiar with the situation. The decision comes days after Silvergate Capital Corp (SI.
What is the Gemini crypto scandal? ›
“Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown,” NYDFS Superintendent Adrienne Harris said in a statement Wednesday.
Which banks work with Gemini? ›
U.S. dollars in your Gemini Account may be held at State Street Bank and Trust Company, JPMorgan Chase Bank, N.A. and thus may be eligible for FDIC “pass-through” insurance, subject to applicable limitations.
Who owns Gemini crypto exchange? ›
It is one of the most popular exchanges and is owned by Cameron and Tyler Winklevoss. Gemini.
Is Gemini crypto exchange safe? ›
U.S. dollars in your Gemini account are also protected. These cash deposits have the same FDIC insurance that many banks and credit unions offer, covering up to $250,000 per eligible account. In a nutshell, the answer to the question of "Is Gemini exchange safe?" is yes.
Does a Gemini like to chase? ›
Gemini signs are all about mental stimulation. They enjoy engaging with people who can keep up with their flirty banter and spontaneity and are down to change things up day to day. They aren't afraid to chase more than one person at a time because they love the different types of conversations presented to them.
Does Chase accept crypto? ›
No, we block any payment we identify as a crypto asset transaction.
Who does Gemini clash with? ›
There are four star signs that are known for having low Gemini compatibility. These four signs are Cancer, Pisces, Scorpio, and Capricorn.
According to the SEC's complaint, Gemini Earn had approximately 340,000 retail users and $900 million in assets on its platform when, in November 2022, Genesis halted withdrawals, citing “withdrawal requests which have exceeded our current liquidity.”
Has anyone lost money on Gemini Earn? ›
Earn customers were promised interest payments, but lost their money when Genesis defaulted on approximately $1 billion worth of loans in November 2022. Genesis declared bankruptcy two months later, leaving more than 200,000 Earn customers unable to access their digital currency.
Why did Gemini fail? ›
Basically, the model was fine-tuned to allow for diverse groups of people in pictures, but “failed to account for cases that should clearly not show a range.” This led to controversial images like people of color showing up as Vikings and Native American Catholic Popes.
Why can't I withdraw from Gemini? ›
Your crypto withdrawals may be temporarily restricted for a few different reasons: Sign-In From a New Device. Pending Bank Transfer (ACH) Pending Debit Card Transfer (24 hour hold)
Will I ever get my money from Gemini? ›
February 28, 2024 – Today, we shared with Earn users that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in kind.
Are Gemini funds frozen? ›
The Winklevoss brothers' cryptocurrency exchange Gemini Trust reached a settlement with bankrupt crypto lender Genesis Global that would return digital currencies now worth around $2 billion to roughly 232,000 Gemini customers whose assets were frozen by Genesis in late 2022.
What three crypto banks are shut down? ›
It prompted a massive liquidity crisis, thereby leading to the collapse. Over the last week, we've observed the collapse of three major banks in the United States - Silvergate, Silicon Valley, and Signature.
Does JP Morgan deal with cryptocurrency? ›
"JP Morgan is rolling out the first US bank-backed cryptocurrency to transform payments business." Bloomberg. "JPMorgan Says JPM Coin Now Handles $1 Billion Transactions Daily."
Who owns Gemini Financial Services? ›
It was founded in 2014 by Cameron and Tyler Winklevoss.
