Gemini Announces Full Recovery as Earn Users to Receive 232% of Their Digital Assets
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Gemini has announced a 232% recovery for its Earn users, who are set to receive $2.18 billion in crypto over the next 12 months. This amount, significantly influenced by the current market prices, will be disbursed in-kind, avoiding conversion to fiat currency. Remarkably, this figure marks over $1 billion increase from the value of the assets when Genesis halted withdrawals in November 2022, which at the time totaled $940 million.
Users to Receive Updated Crypto Worth
Gemini declared on Wednesday that all Gemini Earn users will get back their digital assets in-kind. According to the company’s press release, this means that users will receive exactly what they lent out; for example, someone who lent one bitcoin will get one bitcoin back.
Gemini reported that Earn users have successfully reclaimed $2.18 billion worth of their digital assets in-kind. This remarkable recovery rate of 232% follows the initial withdrawal halt by Genesis, Gemini’s Earn partner, which led Gemini to suspend its own withdrawals from the Earn program.
In November 2022, the cryptocurrency held by approximately 232,000 users was valued at $940 million. Since then, the value of Bitcoin is up by 200%.
Tyler Winklevoss, CEO of Gemini, said, “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. To that end, we will continue to fight for clear rules and guidance for our industry that foster both innovation and consumer protection. And we will win this fight. The future is bright.”
The recovery amount has surpassed earlier estimates. In February, the New York Department of Financial Services revealed a settlement with Gemini, where the agency noted that Gemini would return “at least $1.1 billion” to Earn program customers via the Genesis bankruptcy proceedings.
Legal Battles and Settlements Complicate Asset Distributions
The journey towards asset distribution might face obstacles. Gemini and Genesis have faced numerous disputes concerning the return of assets to Earn customers.
The lawsuit involving Genesis and Gemini has attracted attention from both the U.S. Securities and Exchange Commission and the New York Attorney General.
Earlier this month, the NYAG revealed that a previously agreed settlement with Genesis, which had gained court approval earlier in the year, would lead to the establishment of a Victims Fund for Genesis creditors. This fund is expected to gather approximately $2 billion from the remaining assets of the now-bankrupt lender.
It remains uncertain whether any portion of the Victims Fund will be allocated to the Earn distribution. In February, Gemini declared that the settlement with Genesis enabled them to start returning cryptocurrency to Earn users.
Last week, a bankruptcy judge dismissed DCG’s objection to the liquidation plan of the bankrupt lender. Although the proceedings are still ongoing, the situation appears to be drawing to a close.