06/02/19 11:19 UTC-4

Scandals on the Gemini exchange: the platform froze the accounts of over-the-counter traders

The Gemini cryptocurrency exchange again found itself in the center of scandals, after freezing the accounts of two OTC (over-the-counter) platforms that were going to convert GUSD stable-coin (Dollar Gemini).

Gemini, the American Winklevoss Brothers exchange, was criticized and condemned after the OTC traders froze accounts without explanation. According to CoinDesk, the OTC platforms that are involved in the scandalous proceedings decided to remain anonymous.

OTC TradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details
(Over the Counter) – trading without exchange, which is carried out directly between the market maker and the buyer.

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Gemini and frozen OTC traders accounts

According to CoinDesk, Gemini froze two accounts of OTC platforms from Latin America. According to the statements, the account of the first platform was frozen after attempts to convert into several millions of GUSD (Dollar Gemini) stable-coins into fiat. The second account of the OTC trading platform was frozen for unknown reasons, also after trying to cash out a large amount of GUSD.

Two OTC platforms (according to anonymous expert comments) are professional "trading" organizations of market makers with a good reputation. However, Gemini representatives ambiguously commented on their actions as "logical (...), but there will be no reason to divulge the exchange". Also, in response to a wave of accusations, the platform stated that "there are no mistakes in actions".

"(...) Некоторые потенциальные клиенты не соответствуют нашей программе правового соответствия. Это не ошибка, а особенность Gemini (...) Мы понимаем, что это может не нравиться, но это необходимо (...)"

One of the assumptions of this behavior on Gemini is the desire of the exchange to improve its rating in the statistics of CoinMarketCap. CoinMarketCap also links previous problems with the conversion of crypto-coins to fiat on Gemini. Although the Winklevoss brothers recently stated that the stock-exchange had already repaid GUSD for $ 133 million. According to their statement, this is more than half of the total tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details
emission. However, some Gemini customers have withdrawn amounts up to $ 40 million at a time.

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The scandalous proceedings on Gemini occurred because the platform froze the accounts of over-the-counter trading platforms. According to the information on CoinDesk, this is not the first time that problems have been noticed with the withdrawal of stable-coins.

Editor: Alyona Nabok

See also: "Coinbase launches Paypal withdrawal support for EU users"

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