Gemini Exchange Initiates $2.2 Billion Asset Redistribution to Earn Program Users

In an unprecedented move, Gemini, a cryptocurrency exchange platform, has commenced the restitution of $2.18 billion in digital assets to participants of its previously suspended Earn program. This initiative marks a significant milestone following an 18-month hiatus of withdrawal activities.

Owned by the renowned Winklevoss twins, Cameron and Tyler, Gemini’s announcement on Wednesday heralded the commencement of asset distribution. Approximately 97% of the digital assets, as accounted for on the suspension date of November 16, 2022, are now accessible within the users’ Gemini accounts.

This development is a direct consequence of a settlement reached in the Genesis Bankruptcy proceedings, ensuring that Earn program users will regain 100% of their digital assets. The settlement terms guarantee the return of assets in their original form; for instance, one bitcoin lent will equate to one bitcoin returned, inclusive of any appreciation in asset value during the lending period.

The $2.18 billion distribution signifies a 232% asset recovery for Earn program users, a substantial increase since the program’s suspension. The Earn program, launched in 2021, offered users attractive yields on their cryptocurrency holdings. Gemini facilitated this by lending out these assets to institutional borrowers via Genesis Global Capital.

However, in November 2022, Genesis Global Capital ceased loan originations and redemptions, compelling Gemini to suspend its Earn program withdrawals. Subsequently, Genesis sought Chapter 11 bankruptcy protection in January in a Manhattan federal court.

In a recent development, New York Attorney General Letitia James announced a $2 billion settlement with Genesis, aimed at reimbursing investors impacted by fraudulent activities.