In a significant development for customers affected by the suspension of Gemini’s crypto lending program, the crypto exchange announced the return of $2.18 billion in digital assets to customers.
Gemini, owned by tech billionaire twins Cameron and Tyler Winklevoss, temporarily halted withdrawals from its Earn program in November 2022, leaving users waiting for their funds.
Full return of assets for defunct Earn program customers
According to CNBC reportIn an email sent to customers on Wednesday, Gemini informed them that approximately 97% of the digital assets owed to them at the time of the suspension are now available in their Gemini accounts.
The company reached a settlement with Genesis, its lending partner and other creditors involved in the Genesis project. Bankruptcy, ensuring that all users receive their digital assets in full. The email adds:
This means that if you lent a Bitcoin under the Earn program, you will receive a Bitcoin in return. And that means you will receive any increase in the value of your assets since you loaned them out through the Earn program.
With this distribution, users will experience a significant recovery of 232% compared to the initial suspension of the Earnings programproviding relief to those affected by the long wait to access their funds.
Gemini Solves Crypto Lending Program Crisis
Launched in 2021, the Earn program allowed Gemini clients to earn high returns in cryptocurrencies by participating in the exchange’s lending program. Gemini, in turn, lent its clients’ crypto holdings to institutional borrowers through Genesis Global Capital, its trusted lending partner.
Genesis Global Capital’s pause in originating and repurchasing new loans in November 2022 prompted Gemini to pause withdrawals from its Earn program. Subsequently, Genesis filed for Chapter 11 bankruptcy in January, leading to a prolonged period of uncertainty for affected customers.
However, recent developments have brought positive news. Last week, New York Attorney General Letitia James announcement a $2 billion settlement with Genesis, guaranteeing repayment to defrauded investors.
Genesis Global Capital was also taken to court approval to launch its plan to repay $3 billion to creditors, including participants in the Gemini exchange’s Earn program. Notably, Digital Currency Group (DCG), the parent company of Genesis, will not recover any value from the bankruptcy repayment plan.
Gemini’s decision to return the $2.18 billion in digital assets to its customers marks an important step toward resolving the consequences of the suspension of the Earn program.
At the time of writing, Bitcoin, the largest cryptocurrency on the market, has a value of $67,750. Over the past 24 hours, it has shown sideways price action, indicating minimal fluctuations from Tuesday’s closing price.
Featured image from Shutterstock, chart from TradingView.com
