At the forefront of the cryptocurrency industry, Gemini Trust Co., owned by the Winklevoss twins, Cameron and Tyler Winklevoss, has made headlines with their latest announcement. Customers who have been patiently waiting for their funds from Gemini’s defunct crypto lending program can now breathe a sigh of relief as the company has committed to returning $2.18 billion of digital assets to users of the Earn program.
This exciting development marks a significant milestone for those affected by the suspension of withdrawals from the Earn program back in November 2022. Gemini has emphasized their commitment to ensure that all users will receive 100% of their digital assets back in kind. This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back, along with any increase in the value of your assets since they were initially lent.
The $2.18 billion fund distribution represents an impressive 232% recovery for users since the freeze on withdrawals took place 18 months ago. The Earn program, which was first introduced in 2021, offered customers the opportunity to earn high yields on their coins by participating in Gemini’s lending scheme. Through their partnership with Genesis Global Capital, Gemini lent customers’ crypto to institutional borrowers.
However, the program faced challenges in November 2022 when Genesis Global Capital halted new loan originations and redemptions, leading to Gemini’s decision to pause withdrawals from the Earn program. Subsequently, Genesis filed for Chapter 11 bankruptcy protection in Manhattan federal court last January.
In a recent development, New York Attorney General Letitia James announced a $2 billion settlement with Genesis to repay defrauded investors, further solidifying the steps taken to ensure that affected users receive their funds.
This news from Gemini underscores their commitment to transparency and customer satisfaction, setting a positive precedent for the cryptocurrency industry as a whole. Stay tuned for more updates and insights from the Extreme Investor Network as we continue to track the latest developments in the world of finance and investment.