• Members of Gemini’s Earn program received $2.18 billion in digital assets.

  • Genesis and other creditors negotiated a settlement during the bankruptcy procedure.

Users of the now-defunct Earn lending program have started to get their funds via cryptocurrency exchange Gemini. A statement on May 29 states that members of Gemini’s Earn program received $2.18 billion in digital assets, which amounts to 97% of the assets owed to them and a 232% recovery after Genesis, a previous Gemini Earn partner, stopped allowing withdrawals.

The statement on X read:

“This means, for example, if you had lent one Bitcoin in the Earn program, you will receive one Bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program.”

Absence of Regulatory Certainty

Genesis and other creditors negotiated a settlement during the bankruptcy procedure, which led to the distribution of the funds. After temporarily halting withdrawals in November 2022 due to a liquidity situation, digital currency lender Genesis Global filed for bankruptcy in January 2023. Genesis has been given the green light by a judge to repay its creditors with $3 billion worth of cash and cryptocurrencies.

Moreover, on May 20, Attorney General Letitia James of New York announced that her office had settled investor fraud allegations with Genesis for $2 billion. Also, Genesis was forced to discontinue operations in New York and repay monies to investors as part of the settlement. Over $1.1 billion was invested under the Gemini Earn scheme, and Genesis faced accusations of deceiving those investors.

Furthermore, as per Gemini, the Genesis collapse was not a crypto problem. The defunct exchange pointed out in their statement that the absence of regulatory certainty has only served to exacerbate old-fashioned financial fraud. 

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