Tyler Winklevoss and Cameron Winklevoss (LR), founders of cryptocurrency exchange Gemini Trust Co., take the stage at Bitcoin 2021, a cryptocurrency conference, in Wynwood, Miami, Florida on June 4, 2021 Held at the Manna Convention Center.
Joe Reddell | Getty Images
Customers whose funds were locked up in cryptocurrency exchange Gemini’s defunct crypto lending program are finally starting to get their money back.
The company, owned by tech billionaire twins Cameron and Tyler Winklevoss, announced Wednesday that it will return $2.18 billion in digital to users of its Earn program assets, the plan suspended withdrawals in November 2022.
“Today, we are pleased to inform you that the initial revenue distribution – approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) – is now available in your Gemini account,” Gemini Customers will be notified via email on Wednesday.
“We previously announced that we have reached a settlement with Genesis and other creditors in Genesis’ bankruptcy case, which will result in all Earn users receiving 100% of their digital assets in physical form.”
The email added: “This means that if you lend one Bitcoin on the Earn program, you will receive one Bitcoin back. This means you will receive all the value of your asset since you borrowed on the Earn program. value added.
The fund allocation, worth $2.18 billion, represents a 232% recovery for users since Gemini froze withdrawals from its Earn plan customers 18 months ago.
First launched in 2021, Earn enables customers to earn high returns by storing their tokens in Gemini’s program. Gemini then lends the client’s cryptocurrency to institutional borrowers through its chosen lending partner, Genesis Global Capital.
In November 2022, Genesis Global Capital suspended new loan originations and redemptions, forcing Gemini to stop withdrawals from its Earn plan. Genesis filed for Chapter 11 bankruptcy protection in Manhattan federal court last January.
Last week, New York Attorney General Letitia announced a $2 billion settlement with Genesis to repay defrauded investors.
About The Author
