According to Odaily Planet Daily, Genesis and Gemini have taken steps to compensate users affected by their failed Earn program. According to a statement issued by Gemini on March 19, Genesis asked the bankruptcy court to approve in principle a settlement agreement to distribute the funds to users.
The request will be considered at a hearing on April 16. If the settlement is approved, affected Earn users will receive 100% of their assets, with 97% expected to be repaid within weeks of court approval. The remaining funding will be provided by Genesis parent company Digital Currency Group.
This means that Earn users will receive a total of $2 billion in cryptocurrency at current prices, which is $900 million more than when the Earn program is discontinued in 2022. Gemini said it will make $50 million available to users and will also be allowed to accelerate delivery of assets regardless of whether Genesis' bankruptcy plan is approved.
Earlier news, the U.S. SEC announced that Genesis Global Capital agreed to the final judgment. The SEC ordered it to pay a civil penalty of US$21 million and impose a permanent injunction to settle charges that it conducted unregistered securities issuance and sales through crypto-asset loan schemes (the SEC Planned for Gemini Earn).