Gemini Earn users get $2.18 billion in crypto, representing 232% recovery
- Gemini Earn users get $2.18 billion in digital assets back, which represents a 232% recovery.
- Users will receive 100% of their crypto back, with the initial distribution representing 97% of Earn users’ assets.
Gemini has announced that its customers of its Gemini Earn program have received $2.18 billion worth of digital assets.
The distribution is in kind and represents a 232% recovery for Earn users, Gemini co-founder and CEO Tyler Winklevoss and co-founder and President Cameron Winklevoss said in a news release.
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Gemini Earn users get $2.18 billion in digital assets
Per Gemini‘s announcement, the $2.18 billion distribution accounts for 97% of the digital assets owed to Gemini Earn’s users. The initial payout is $1 billion on more, or 232% recovery on users’ digital assets following Genesis’s halting of withdrawals and bankruptcy.
Commenting on the payment in kind, Gemini noted that a customer who deposited one bitcoin receives one bitcoin back. Gemini has also assured Earn users that they will receive “any and all appreciation” of their digital assets from the time they lent them into the program.
A long wait
Crypto lender Genesis halted withdrawals in November 2022, a development that followed the shocking collapse of cryptocurrency exchange FTX. Genesis revealed it had significant exposure to the imploded crypto exchange.
While crypto prices plummeted amid the chaos that followed, including Bitcoin’s dive to lows of $15,600, the past two years have seen BTC prices skyrocket.
In March this year, Bitcoin rose to a new all-time high above $73,000. The top digital asset traded around $22,700 when Genesis filed for Chapter 11 bankruptcy plan in January 2023.
Gemini Earn’s users are getting their digital assets back after a US bankruptcy judge approved Genesis Global’s chapter 11 wind-down early this month.
Earn users to receive 100% of their assets
In February, Gemini announced that it would return 100% of users’ assets following a settlement with Genesis and the bankrupt crypto lender’s other creditors.
According to today’s announcement, users should expect the balances within the next 12 months.
“It’s important to note that the Genesis bankruptcy was not a crypto problem. It was old-fashioned financial fraud compounded by a lack of regulatory clarity,” Gemini CEO Tyler Winklevoss said.
The exchange reportedly contributed $50 million towards the Earn recovery.