The cryptocurrency exchange Gemini announced in a statement that more than a year after the lending program ended, Gemini Earn members will receive more than $2 billion of their cryptocurrency back in kind.
The Winklevoss twin-owned exchange stated on Wednesday that the money will be given out in kind, meaning that Gemini Earn users who lent one bitcoin will get one back. According to Gemini, the distributions also show a 232% recovery from the November 2022 withdrawal freeze.
In a statement, Cameron Winklevoss, co-founder and president of Gemini, stated, “We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade.”
Gemini has also contributed $50 million to the Earn users’ recovery program, to ensure that resolution is sucessfull. Customers can loan their cryptocurrency to the now-bankrupt Genesis Global Capital, LLC and earn up to 7.4% APY through Gemini’s Earn program, which was introduced in 2021.
Following the financial losses from the bankruptcies of the cryptocurrency exchange FTX in 2022 and the cryptocurrency hedge fund Three Arrows Capital in 2022, Genesis Global Holdco filed for bankruptcy protection in January 2023. The remainder of the “asset balance” for Gemini Earn customers should be received within the next year, the business announced on Wednesday.
Both Gemini and Genesis faced lawsuits in January 2023 from the U.S. SEC. They were accused of conducting an unregistered offer and sale of securities with the Earn program. Both companies have moved to dismiss the lawsuit.
Regarding the cryptocurrency lending scheme, the New York Attorney General’s Office has also filed lawsuits against Gemini, Genesis Global Holdco, and Digital Currency Group, its parent business. Gemini settled a lawsuit with the New York State Department of Financial Services in February, agreeing to pay a $37 million fine and return $1.1 billion to Gemini Earn customers. The regulator cited Gemini’s failure to vet or monitor Genesis Global Capital, an unregistered entity.
