Gemini

2024

when

Gemini Earn users will receive triple the value of assets locked in the lending product after debacles with FTX and Genesis.&nbsp;
On Wednesday, crypto exchange Gemini <a href="https://www.gemini.com/blog/gemini-earn-users-receive-usd2-18-billion-of-their-digital-assets-in-kind-a" target="_blank" rel="noopener noreferrer nofollow">announced</a> plans to repay creditors $2.18 billion worth of cryptocurrency. The in-kind reimbursement represents a 232% recovery for Earn users previously left in bankruptcy limbo.
Gemini’s lending partner, Genesis, a Digital Currency Group’s (DCG) subsidiary, was caught in FTX’s 2022 crash. The turbulence effectively blocked withdrawals for over $940 million domiciled in the Earn product used by more than 230,000 users.
Genesis entered a protracted bankruptcy due to a public legal dispute, as Gemini’s co-founders Cameron and Tyler Winklevoss <a href="https://crypto.news/gemini-sues-genesis-for-1-6b-gbtc-shares-ownership/" target="_blank" rel="noopener noreferrer nofollow">accused</a> Genesis, DCG, and DCG CEO Barry Silbert of defrauding investors. New York authorities <a href="https://crypto.news/gemini-genesis-dcg-slammed-with-1b-crypto-fraud-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">sued</a> all three firms, and the crypto exchange eventually paid $37 million in fines while agreeing to recover $1.1 billion for Earn investors in February.
You might also like: <a href="https://crypto.news/gemini-genesis-sec-denied/" rel="noopener noreferrer nofollow"> Gemini, Genesis motions to dismiss SEC Earn complaint denied </a>
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 Today, Earn users received $2.18 billion of their digital assets in kind. These initial distributions represent: • 97% of digital assets owed to Earn users • $1 billion more than when Genesis halted withdrawals • A 232% recovery from when Genesis halted withdrawals…— Gemini (@Gemini) <a href="https://twitter.com/Gemini/status/1795819898049884468?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 29, 2024</a>
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In the repayment statement, the firm said its issue with Genesis “was old-fashioned financial fraud compounded by a lack of regulatory clarity”, rather than a crypto problem.&nbsp;As a show of good faith, the exchange allocated $50 million to ensure Earn users’ recovery in an unprecedented bankruptcy outcome.
Several other beleaguered firms from crypto’s 2022 black swan year are also finalizing creditor repayment plans.&nbsp;The <a href="https://crypto.news/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims/" rel="noopener noreferrer nofollow">FTX estate</a> expects to return up to 142% of customer funds and make over two million creditors whole, accounting for a difference in crypto prices since filing for Chapter 11 protection.&nbsp;
Read more: <a href="https://crypto.news/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims/" rel="noopener noreferrer nofollow"> FTX has billions more than needed to repay bankruptcy victims </a>

Gemini to repay Earn customers $2.18 billion

crypto.news

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