Disputes between DCG and Gemini

3 min readJan 10, 2023
Photo by Micaela Parente on Unsplash

It has been 60 days since Genesis held customers’ funds and has not allowed anyone to withdraw.

This impact other services like Gemini Earn program, which withheld customers’ funds and pending withdrawal.

This triggers a question of why those financial services pause withdrawal and why this is not allowed.

I asked ChatGPT to give suggestions and here it is:

It is generally not acceptable for financial services institutions to withhold customers’ funds without a valid reason. This is because customers entrust their money to these institutions with the expectation that it will be safe and accessible to them when they need it. Withholding funds without a valid reason would violate this trust and could result in financial loss or inconvenience for the customer.

However, there are certain circumstances where financial services institutions may be required to hold or freeze a customer’s funds. This is typically done as a result of legal or regulatory requirements. For example, in the United States, the government may freeze a person’s assets if they are suspected of engaging in illegal activities such as money laundering or terrorism financing. Banks also freeze the funds if there is any suspicious activity on account or any kind of fraud.

Additionally, financial institutions are required to adhere to laws related to “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML) regulations. These laws require financial institutions to identify and verify the identities of their customers, and to monitor their transactions for suspicious activity. In some cases, if an institution has reason to suspect illegal activity, it may be required by law to freeze or hold a customer’s funds until the suspicious activity can be investigated.

It is important to note that in cases where a financial institution holds or freezes a customer’s funds, it must provide an explanation for why the funds are being withheld and for how long, and inform the customers of any steps they can take to have the hold released, such as providing additional documentation or proof of legitimate funds.

Genesis holding withdrawal funds is unreasonable and unacceptable.