Gemini

Future

Billion

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 <p class=""><strong>Crypto exchange <em>Gemini</em> has achieved a significant milestone by reimbursing users of its now-defunct lending program, Earn, with $2.18 billion in digital assets.</strong> This reimbursement marks a 232% recovery following an interruption of withdrawals by Genesis, a former partner of the Gemini Earn program, and represents 97% of the assets owed to users.</p>
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    <p lang="en" dir="ltr">Earn Update: Today, we are pleased to announce that initial Earn distributions — approximately 97% of the digital assets owed to you as of the suspension date (November 16, 2022) — are now available in your Gemini account.<br><br>Collectively, Earn users are receiving $2.18 billion of…</p>— GeminiTrustCo (@GeminiTrustCo) May 29, 2024
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 <h3 class="wp-block-heading" id="genesis-bankruptcy-and-financial-fraud">Genesis Bankruptcy and Financial Fraud</h3>
 <p class="">The fund distribution was made possible through a settlement with Genesis and other creditors during the bankruptcy process. <em>Genesis Global</em>, a crypto lender part of the <em>Digital Currency Group (DCG)</em>, filed for bankruptcy in January 2023 after suspending withdrawals amid a liquidity crisis in November 2022. <em>New York Attorney General</em> <em>Letitia James</em> announced a $2-billion settlement with Genesis to address investor fraud claims, ordering Genesis to return funds to investors and cease operations in New York.</p>
 <h3 class="wp-block-heading" id="distribution-mechanics-and-user-impact">Distribution Mechanics and User Impact</h3>
 <p class="">On May 29, Gemini confirmed that the $2.18 billion distribution would be in-kind, meaning users would receive their assets in their original form, including any appreciation since the assets were lent. The recovery covered 97% of the owed digital assets, with the remaining balance expected within the next 12 months. <em>Cameron Winklevoss</em>, <em>Co-Founder and President</em> of <em>Gemini</em>, expressed gratitude for the customers’ patience during the lengthy process.</p>
 <h3 class="wp-block-heading" id="regulatory-and-industry-implications">Regulatory and Industry Implications</h3>
 <p class="">Gemini emphasised that the Genesis bankruptcy was due to “old-fashioned financial fraud compounded by a lack of regulatory clarity” rather than issues inherent to the crypto sector. <em>Tyler Winklevoss</em>, <em>Co-Founder and CEO</em> of <em>Gemini</em>, reiterated the need for clear regulations to foster innovation and consumer protection within the industry.</p>
 <h3 class="wp-block-heading" id="successful-industry-recovery">Successful Industry Recovery</h3>
 <p class="">Gemini’s achievement stands out among other crypto firms that faced insolvency in 2022. Unlike firms such as FTX and Celsius, which promised cash reimbursements, Gemini ensured that customers would benefit from the appreciation of their digital assets. The company’s proactive approach, including a $50 million contribution to the recovery efforts, has been widely praised within the crypto community.</p>
 <h3 class="wp-block-heading" id="future-prospects-and-final-steps">Future Prospects and Final Steps</h3>
 <p class="">The path to these distributions was fraught with challenges, including lawsuits and heated negotiations between Gemini, Genesis, and DCG. However, with the recent court approval of Genesis’s bankruptcy plan, the recovery process is nearing completion. Gemini remains committed to advocating for regulatory clarity and protecting consumer interests in the evolving crypto landscape.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/gemini-s-remarkable-recovery-2-18-billion-restored-to-earn-users-tbt90514.html">https://thebittimes.com/gemini-s-remarkable-recovery-2-18-billion-restored-to-earn-users-tbt90514.html</a></p>

Gemini’s Remarkable Recovery: $2.18 Billion Restored to Earn Users

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