Gemini has announced a $2.18 billion distribution to its Earn program users 18 months after suspending withdrawals
Cryptocurrency exchange Gemini has started refunding users of its Earn program after an 18-month withdrawal freeze. On May 29, the company announced that its Earn program users received $2.18 billion in digital assets. This payout represents 97% of the assets owed and marks a 232% recovery after Genesis, a former partner of Gemini Earn, halted withdrawals.
“This means, for example, that if you had lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program,” Gemini said.
Fund Distribution
The fund distribution followed a settlement with Genesis and other creditors during bankruptcy proceedings. Genesis Global, a crypto lender within the Digital Currency Group (DCG), declared bankruptcy in January 2023 after pausing withdrawals in November 2022 due to a liquidity crisis.
After suspending withdrawals, a court recently approved Genesis’ return of $3 billion in cash and cryptocurrency to its creditors.
“This represents an unprecedented recovery among crypto bankruptcies, as well as bankruptcies in general, and follows our previous announcement that we reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind,” Genesis added.
Gemini noted that it understood the difficulties caused by the prolonged process and deeply appreciated the ongoing support and patience.
Genesis Settlement
New York Attorney General Letitia James announced a $2-billion settlement with Genesis on May 20, 2024, to address investor fraud claims. The settlement mandates Genesis to return funds to investors and halt operations in New York. Genesis faced accusations of misleading investors, who deposited over $1.1 billion through the Gemini Earn program.
Gemini noted that the firm’s bankruptcy was not related to crypto. It clarified that it was old-fashioned financial fraud aggravated by unclear regulations.
Genesis was among several crypto firms that declared bankruptcy after FTX’s massive collapse in November 2022.
