Freeze for 18 months! Gemini Earn will refund $2.18 billion to users

In 2022, Gemini’s financial product Gemini Earn was affected by the bankruptcy of FTX due to its partner Genesis, resulting in asset losses. Gemini Earn was also suspended and withdrawals were suspended.

After suspending withdrawals 18 months ago, the cryptocurrency exchange owned by the tech billionaire twin Winklevoss brothers has delivered on its promise to users.

Refunding $2.2 billion to Earn users

Gemini announced on Wednesday that it will refund $2.18 billion in digital assets to users of the Earn program. Withdrawals were suspended in November 2022 due to complications with its lending partner Genesis Global Capital.

Gemini informed users that as of the suspension date (November 16, 2022), approximately 97% of the digital assets owed by Genesis can be used in Gemini accounts.

Gemini is fully refunded with interest

This email is a follow-up to a previous settlement with Genesis and other creditors in the Genesis bankruptcy case. Gemini assures users that they will recycle all digital assets proportionally.

The email states: “If you lend one Bitcoin in the Earn program, you will get one Bitcoin back. This also means you will get back any and all increases in value since you loaned the asset. ”.

Centralized platform traceability results: 232% refund

According to CNBC, the $2.18 billion issuance represents 232% of user assets since Gemini froze its Earn plan customer withdrawals 18 months ago. % return. It is a positive turn for users who face locked-up funds and uncertainty.

What is the Gemini Earn program? Why the loss?

Just like debt or financial products, it allows users to deposit cryptocurrency to earn interest income.

The Earn program, first launched in 2021, allows customers to earn high returns by depositing cryptocurrencies into Gemini’s program. Gemini then lends these cryptocurrencies to institutional borrowers through Genesis Global Capital.

However, in November 2022, Genesis Global Capital suspended the distribution of income and redemptions, causing Gemini to suspend withdrawals from the Earn plan. Genesis subsequently filed for Chapter 11 bankruptcy protection in January in Manhattan federal court.

Last week, the New York State Attorney General announced a $2 billion settlement with Genesis to repay defrauded investors. Only then did Gemini Earn come to an end.

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