Gemini Distributes $2.18B to Earn Users

Crypto Exchange Gemini has initiated the reimbursement process for users of its defunct lending program, Earn. An announcement states that Earn users were reimbursed $2.18 billion in digital assets on May 29, which equals 97% of the owed assets.

This marks a significant recovery of 232% following Genesis’ interruption of withdrawals, a former partner of Gemini Earn. The announcement also ensures that users will receive their original assets, as well as any appreciation they may have gained since lending them to the program.

The reimbursement was made possible through a settlement with Genesis and other creditors during the bankruptcy process.

Genesis Global, a subsidiary of Digital Currency Group (DCG), declared bankruptcy in January 2023 after halting withdrawals due to a liquidity crisis in November 2022. The court has recently approved a repayment plan for Genesis where they will return $3 billion in cash and cryptocurrency to their creditors.

This recovery of 97% of owed assets is unprecedented in the world of bankruptcies involving cryptocurrency.