Gemini Earn Users to Recover $2.18 Billion in Assets

Users of Gemini Earn will receive a full return of assets totaling $2.18 billion, over a year after the program’s closure due to the bankruptcy of Genesis. This was announced in a blog post by the exchange.

The funds will be distributed in kind, meaning in the cryptocurrencies that were originally locked on the platform at the time withdrawals were halted.

According to Gemini, the payout volume represents a 232% increase in asset value since November 2022.

“We are pleased to have achieved such a recovery for our clients. We recognize the difficulties caused by this lengthy process and appreciate the ongoing support and patience of our users,” noted Gemini co-founders Cameron and Tyler Winklevoss.

The initial distributions will account for approximately 97% of the digital assets in the Earn program. Over the next 12 months, the exchange will unlock the remaining funds. The company has also allocated $50 million of its own funds for repayments.

Gemini launched the Earn program in 2021, allowing clients to lend their cryptocurrency to the now-bankrupt Genesis Global Capital and earn up to 7.4% annually.

Genesis Global Holdco and its subsidiaries filed for Chapter 11 bankruptcy in the US in January 2023 due to significant losses following the collapses of Three Arrows Capital and FTX.

In May 2024, Genesis received court approval to distribute $3 billion in fiat and cryptocurrencies among its creditors, which accounted for about 77% of the firm’s total liabilities.

Earlier, in February, the New York Attorney General’s Office tripled the alleged fraud amount to over $3 billion in the case against Gemini, Genesis, and Digital Currency Group.

In the same month, the Winklevoss exchange committed to returning $1.1 billion to Earn users as part of a lawsuit settlement.