The Gemini cryptocurrency exchange run by the Winklevoss twins is said to close accounts of two OTC platforms when the latter tried to take up Geminin Dollar stablecoin.
The sticky situation has occurred lately and become known once the operators of the platforms reported about unexplained account shut down. The platforms asked not to reveal their names due to possible damage to their status and reputation, as the news reports read.
Notably, the exchange priced GUSD to OTC platforms with 1% discount striving to boost the market share of the stablecoin.
One of the traders that were involved in this scandal is located in Latin America. The exchange closed the account following the request to exchange several millions of Gemini Dollars. At the same time, the Gemini spokesperson noted that that account was checked and it was decided to block it. However, the company refused to comment on the reasons. Notably, a large crypto exchange confirmed the reputation of that trader.
The second account that was closed is provided by US-based OTC platform. Some sources believe that these moves are aimed at expanding Gemini status at the global crypto services.
Moreover, there are reports that another OTC platform that runs Gemini account added that this is a common problem with this exchange during an attempt to convert their stablecoin into fiats.
According to available information, Gemini failed to explain the reasons behind such moves.
Facing numerous complaints, the exchange made a statement saying that some their potential clients either fail or unable to comply with the legal requirements of the company, and this should be considered as an exchange's feature rather than an error, as Coindesk reported citing the statement.