- Gemini Earn users are to get 100% of their funds back following a deal between Genesis and Gemini
- The deal ends a bitter dispute that has raged since November 2022
- The settlement will return over $1.8 billion in assets, with users expected to receive 97% within two months, pending approval
Gemini yesterday announced that a settlement in principle has been reached with Genesis and other creditors in the Genesis Bankruptcy. The settlement, if approved by the bankruptcy court, will ensure that all Earn users receive 100% of their digital assets back in kind and will settle an argument that has raged since November 2022, representing a great result for customers who feared they would only receive a fraction of the funds they had on the platform when Genesis filed for bankruptcy.
War of Words Ends in Handshakes
The collapse of FTX in November 2022 has a ripple effect on the entire crypto space, with Genesis being one of the most notable casualties. The company froze withdrawals shortly afterward, and with Gemini leveraging Genesis’ platform for its Earn product, its customers were also frozen out of their accounts.
This situation led to a war of words between Genesis and Gemini hierarchy and a lengthy back and forth which has now, as far as Gemini Earn users are concerned at least, ended in a satisfactory manner as they will receive their assets exactly as they lent them, including any appreciation since lending.
The total value of assets to be returned is estimated at over $1.8 billion, $700 million more than when Genesis halted withdrawals in November 2022.
97% Coming Within Weeks
Pending approval, Earn users can anticipate receiving approximately 97% of their assets within about two months, with the remaining balance expected within the next 12 months. The settlement is subject to definitive documentation and the bankruptcy court process, which may take up to two months to complete.
In a statement released yesterday, Gemini expressed gratitude to the New York Department of Financial Services (DFS) for its role in facilitating the settlement which will see Gemini contribute $40 million to aid in Earn users’ recovery.
