Gemini

cherry

when

After a tumultuous period that saw Gemini’s Earn customers locked out of their investments, a beacon of hope shines through the fog. The New York State Department of Financial Services (NYDFS) and cryptocurrency exchange Gemini have finally shaken hands on a deal that promises to return over $1.1 billion to the hands of those who feared their assets were gone for good. This amounts to 97% of all lost assets. But wait, there’s a catch – a $37 million penalty slapped on Gemini for a series of compliance blunders that nearly capsized the entire operation.<a href="https://cointelegraph.com/news/gemini-refund-earn-customers-in-settlement-new-york-financial-regulator" rel="nofollow noopener" target="_blank"> </a> 
The Earn program, designed to be a golden goose for investors, turned into a nightmare when Genesis Global Capital, the third party in charge of managing these assets, crumbled under financial strain. The fallout? A staggering $1 billion in loans made by Earn customers vanished into thin air. 
If the bankruptcy court gives the settlement a green light, Gemini’s plan could see Earn users not only reclaiming their initial investments but also enjoying a cherry on top – appreciation on their assets. I am talking about a potential windfall of over $1.8 billion in value, a figure that overshadows the grim totals when Genesis slammed the brakes on withdrawals back in November 2022. 
But let’s not break out the champagne just yet. To make this payback happen, Gemini is digging deep into its pockets, contributing a $40 million to the <a href="https://www.cryptopolitan.com/genesis-to-sell-its-1-6-billion-gbtc-shares/" data-type="post" data-id="466719">Genesis</a> Global Capital bankruptcy pot. Gemini’s leap into the Earn program back in February 2021 was a bold move, but it was marred by a significant oversight. The NYDFS pointed out that Gemini’s due diligence on Genesis Global Capital was, to put it mildly, less than stellar. This lack of scrutiny left Earn customers high and dry when Genesis hit a financial snag, triggering a domino effect that no one saw coming. 
Superintendent Adrienne A. Harris described the settlement as a “win” for Earn customers. Yet, she also dangled a sword of Damocles over Gemini, hinting at possible further actions if the crypto exchange fails to live up to its end of the bargain. Earn program’s premise was simple yet seductive: lend your coins and get interest payments in return. However, the reality was far more complicated. The NYDFS is accusing against Gemini for inadequate vetting and monitoring of Genesis’s activities.

Gemini set to pay back 97% of customer assets – and the rest?

Cryptopolitan_News

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