Gemini Declares Complete Restoration with Earn Users Set to Receive 232% of Their Digital Assets
Gemini has made an exciting announcement, stating that its Earn users will experience a remarkable 232% recovery. Over the next year, these users are set to receive a staggering $2.18 billion in cryptocurrency. What’s even more impressive is that this amount is higher than the value of the assets when Genesis halted withdrawals in November 2022. Back then, the assets were worth $940 million, but now they have increased by over $1 billion.
Gemini has revealed that all Gemini Earn users will receive their digital assets in-kind. This means that users will get back exactly what they lent out. For instance, if someone lent one bitcoin, they will receive one bitcoin in return.
Gemini has successfully recovered $2.18 billion worth of digital assets for its Earn users. This incredible recovery rate of 232% comes after Genesis, Gemini’s Earn partner, stopped withdrawals, which led to Gemini suspending its own withdrawals from the Earn program.
In November 2022, the cryptocurrency held by around 232,000 users was valued at $940 million. However, since then, the value of Bitcoin has increased by 200%.
Tyler Winklevoss, the CEO of Gemini, emphasized that the Genesis bankruptcy was not a cryptocurrency issue but rather a result of financial fraud and regulatory uncertainties. He expressed his commitment to fight for clear rules and guidance that promote innovation and protect consumers, stating that the future of the industry is bright.
The recovery amount has exceeded previous estimates. In February, the New York Department of Financial Services reached a settlement with Gemini, where it was stated that Gemini would return “at least $1.1 billion” to Earn program customers through the Genesis bankruptcy proceedings.
However, the distribution of assets may face complications due to legal battles and settlements between Gemini and Genesis. The U.S. Securities and Exchange Commission and the New York Attorney General have been involved in the lawsuit.
Recently, the New York Attorney General announced that a settlement with Genesis, which had already received court approval, would establish a Victims Fund for Genesis creditors. This fund is expected to gather around $2 billion from the remaining assets of the bankrupt lender. It is uncertain whether any portion of this fund will be allocated to the Earn distribution. In February, Gemini stated that the settlement with Genesis allowed them to start returning cryptocurrency to Earn users.
Last week, a bankruptcy judge rejected DCG’s objection to the liquidation plan of the bankrupt lender. Although the proceedings are still ongoing, it seems that the situation is coming to a close.
Tags: Bitcoin, Cryptocurrency