Gemini To Return $2.18B To Earn Program Users

Zinger Key Points
  • The $2.18 billion distribution represents a 232% recovery since Gemini froze Earn program withdrawals 18 months ago.
  • Gemini’s Earn program, launched in 2021, allowed users to earn high yields by lending crypto to institutional borrowers.
Loading...
Loading...

Customers who had funds locked up in Gemini's now-defunct crypto lending program, Earn, will finally see their money returned.

What Happened: The company, owned by tech billionaires Cameron and Tyler Winklevoss, announced on Wednesday that it will distribute $2.18 billion worth of digital assets to users of the Earn program, which had paused withdrawals in November 2022.

"Today, we are pleased to let you know that initial Earn distributions — approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) — are now available in your Gemini account," Gemini informed its customers via email on Wednesday.

The email continued, "This follows our previous announcement that we reached a settlement 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 message to customers clarified, "This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all increase in the value of your assets since you lent them into the Earn program."

The $2.18 billion distribution signifies a 232% recovery for users since Gemini froze withdrawals from its Earn program 18 months ago.

Also Read: Ripple Donates Additional $25M To Pro-Crypto Super PAC

Why It Matters: Gemini’s Earn program, which launched in 2021, allowed customers to earn high yields on their cryptocurrencies by storing them in the program.

The stored crypto was then lent out to institutional borrowers through Gemini’s lending partner, Genesis Global Capital.

However, in November 2022, Genesis Global Capital halted new loan originations and redemptions, leading Gemini to suspend withdrawals from the Earn program.

Genesis subsequently filed for Chapter 11 bankruptcy protection in January in Manhattan federal court.

In a recent development, New York Attorney General Letitia James announced a $2 billion settlement with Genesis to repay defrauded investors.

What’s Next: These developments and the implications for the digital asset market will be a key focus at Benzinga’s Future of Digital Assets event on Nov. 19.

Industry leaders will gather to discuss the latest trends and the future of digital asset investments, providing valuable insights into this rapidly evolving sector.

Read Next: PayPal Launches PYUSD Stablecoin On Solana

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsTop StoriesGeminiStories That MatterWinklevoss Brothers
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...