The contagion effects around the collapse of FTX still cannot be gauged. The close ties within the crypto industry have caused even a reputable exchange like Gemini to run into trouble with withdrawals.

Genesis Global Capital, an institutional crypto lender, informed yesterday that it is “temporarily” suspending redemptions and new loan originations in its lending business.

As a result, Gemini was also forced to pause its Earn program withdrawals, as Genesis Global is the lending partner.

In particular, the very awkward timing of a server outage, a few hours after the announcement, set alarm bells ringing in the crypto community.

The exchange assured users that customer funds were safe. “Gemini exchange fully back online; all customer funds held on the Gemini exchange are held 1:1 and available for withdrawal at any time,” it said.

Gemini The Next FTX? On-Chain Analyst Remain Calm

On-chain analysts therefore set out to review Gemini’s crypto holdings. Martin Lee, senior associate data journalist at Nansen examined the exchange’s ETH withdrawal address “0xd244.”

Lee found that the exchange saw a sharp retraction from investors on Nov. 16. In fact, Gemini faced 7.6 times the amount of outflows compared to inflows. Overall, the exchange saw a net outflow of around $500 million (in ETH and ERC20 tokens) in the last 24 hours.

Stablecoin balances on Gemini saw the second largest outflow within the last 7 days among all exchanges. The current balance of stablecoins has dropped from around $500 million to $149 million, or by $351 million.