- Genesis has returned $2.2 billion in crypto assets to participants of the Gemini Earn lending program.
- This distribution follows a New York bankruptcy judge’s approval of the Chapter 11 plan.
- Gemini announced that 97% of the digital assets owed to users are now available in their accounts.
Genesis returns $2.2 billion in crypto assets to Gemini Earn users, marking a significant recovery milestone.
Remaining Earn Balances Coming Within 12 Months
All Earn users will receive 100% of their digital assets back in kind, according to Gemini. This includes any appreciation of the assets since they were lent into the Earn program. While most funds have been returned, users can expect to receive the remaining balances within the next year.
Bitcoin Trust Sale Funds Gemini Earn Repayments After Genesis Default
Getting the money back to Gemini Earn users wasn’t a smooth process. Genesis and Gemini had significant disagreements on handling the asset return. As part of its plan to repay users, Genesis received court approval in February to sell shares it held in the Grayscale Bitcoin Trust. The sale involved 35 million shares worth over $1.3 billion. In November 2022, Genesis failed to repay about $1 billion in loans that Gemini customers had provided through the Earn program, leading to the firm’s bankruptcy filing two months later.
Conclusion
The return of $2.2 billion in crypto assets to Gemini Earn users marks a significant recovery milestone. With 97% of the digital assets already returned and the remaining balances expected within the next year, users can look forward to a full recovery of their assets, including any appreciation. This development underscores the importance of regulatory oversight and the need for robust risk management in the crypto lending space.
