Earn users today received initial distributions totaling $2.18 billion in digital assets. This payout, representing 97% of the digital assets owed to Earn users, signifies a notable step in the recovery process that began when Genesis halted withdrawals.
The returned assets are calculated based on their value as of May 28, 2024, at 10 AM ET, marking a 232% recovery since the cessation of withdrawals. This amount exceeds the value held when withdrawals were paused by $1 billion, ensuring users receive not only their originally lent assets but also any appreciation in value.
Settlement and Future Distributions
This distribution was possible following a principal settlement with Genesis and other creditors in the Genesis bankruptcy proceedings. This agreement is pivotal in ensuring that all Earn users will eventually receive 100% of their digital assets. Additionally, Gemini has contributed $50 million to support the recovery efforts for Earn users.
Today’s distribution covers approximately 97% of the digital assets in the Earn program, with plans to distribute the remaining balance over the next 12 months. This successful initial distribution has been met with enthusiasm from the community, highlighting the potential for favorable resolutions under challenging circumstances.
The underlying issues leading to the Genesis bankruptcy were identified as traditional financial fraud, compounded by a lack of regulatory clarity, rather than problems inherent to the cryptocurrency industry. Looking ahead, industry leaders, including Gemini, are advocating for more explicit regulations that support innovation and ensure consumer protection within the cryptocurrency space.