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Gemini Resumes Withdrawals For Earn Program, Returns $2.18 Billion In Digital Assets To Users

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Gemini Resumes Withdrawals for Earn Program

Customers who had funds locked up in Gemini’s defunct crypto lending program can finally breathe a sigh of relief as the exchange announces the resumption of withdrawals.

In a Wednesday blog post, Gemini, owned by the tech billionaire twins Cameron and Tyler Winklevoss, revealed plans to return $2.18 billion worth of digital assets to users of the Earn program, which had its withdrawals paused since November 2022.

“We reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind,” the blog post read.

The exchange said the distribution includes 97% of the assets owed to users and a 232% recovery following an interruption of withdrawals by Genesis, a former Gemini Earn partner.

“This means, for example, if you had lent one Bitcoin in the Earn program, you will receive one Bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program.”

The platform said that the recovery rate is unprecedented among crypto bankruptcies, as well as bankruptcies in general.

What Was Genesis’ Earn Program?

The Earn program, introduced in 2021, offered customers the opportunity to earn high yields on their coins by depositing them into Gemini’s scheme.

Gemini, in turn, lent customers’ cryptocurrencies to institutional borrowers through its lending partner, Genesis Global Capital.

In November 2022, Genesis Global Capital temporarily halted new loan originations and redemptions, which had a domino effect on Gemini’s Earn program, leading to the suspension of withdrawals.

Genesis subsequently filed for Chapter 11 bankruptcy protection in January last year, seeking to address the financial challenges it faced.

Last week, New York Attorney General Letitia James revealed that her office secured a $2 billion settlement with Genesis to repay defrauded investors, bringing some resolution to the legal proceedings surrounding the case.

“Finally, it’s important to note that the Genesis bankruptcy was not a crypto problem. It was old-fashioned financial fraud compounded by a lack of regulatory clarity,” noted Gemini in the statement.

Former FTX Executives Receive Sentencing

Earlier this week, Ryan Salame, former co-CEO of FTX Digital Markets, was handed a 7.5-year prison sentence by a federal judge after pleading guilty to two felony charges.

Judge Lewis Kaplan, who was presiding over the case, ordered Salame to serve 7.5 years in prison for his involvement in a conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud.

EXPLORE: Gemini Review and Comparison

Salame became the second individual associated with FTX and Alameda Research to be sentenced following Bankman-Fried, who was sentenced to 25 years in prison for orchestrating FTX fraud.

Former Alameda CEO Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang had all pleaded guilty to charges and testified in Bankman-Fried’s criminal trial. The timing of their sentencing hearings remains unknown at this point.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community.

View all Posts by Ruholamin Haqshanas

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