Gemini reveals a major transfer for the settlement of its Earn users of $2.18 billion worth of their digital assets. This is happening due to the settlement agreement made with Genesis and other creditors in the Genesis Bankruptcy case. The settlement guarantees that all Earn users will get back 100% of their digital assets.
Gemini is a leading cryptocurrency exchange and custodian founded in 2014 by the Winklevoss twins. It is a New York trust company regulated by the New York State Department of Financial Services (NYSDFS).
Gemini was the first licensed Ethereum exchange in the U.S. in 2016. They also support withdrawals of other cryptocurrencies like Bitcoin Cash and Ethereum Classic.
In 2021, Gemini launched its Earn program, allowing customers to earn high yields on their crypto deposits by lending them to institutional borrowers through Genesis Global Capital.
However, in November 2022, Genesis paused withdrawals, leading Gemini to halt Earn program withdrawals. This resulted in $2.2 billion worth of customer assets being frozen.
In May 2024, Gemini announced a $2 billion settlement with the New York Attorney General related to the Genesis incident. This will allow Gemini to return approximately 97% of Earn program assets to affected customers.
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The settlement represents a 232% recovery for Earn users since withdrawals were halted 18 months ago. Gemini will return the recovered assets to customers throughout the next 12 months.
In addition to the settlement that it paid, Gemini has further supported its Earn users by contributing $50 million to their recovery. The CEO and President noted that it is thrilled to pay back all its users what they deserve.
“We recognize the hardship caused by this lengthy process and appreciate your continued support and patience throughout this process,” they added.
Per the CEO and President, the Genesis bankruptcy wasn’t caused by crypto issues but by traditional financial fraud and unclear regulations. They also promised to keep pushing for clear rules and guidance to protect consumers and encourage innovation in the industry.
