Gemini Returns $2.18 Billion of Digital Assets to Customers
In a significant development for customers affected by Gemini’s paused crypto lending program, the crypto exchange has announced the return of $2.18 billion of digital assets to customers. Gemini, owned by tech billionaire twins Cameron and Tyler Winklevoss, temporarily halted withdrawals from its Earn program in November 2022, leaving users waiting for their funds.
Full Asset Return For Customers Of Defunct Earn Program
According to a recent report by CNBC, Gemini informed its customers via email that approximately 97% of the digital assets owed to them at the time of the suspension are now available in their Gemini accounts. The company reached a settlement with Genesis, its lending partner, ensuring that all users fully receive their digital assets. The email mentioned that users will receive assets equal to what they had initially lent into the Earn program, including any increase in asset value since lending.
- This distribution results in users experiencing a 232% recovery from the initial Earn program suspension.
- Significant relief to those affected by the long wait for their funds.
Gemini Resolves Crypto Lending Program Crisis
The Earn program, launched in 2021, allowed Gemini customers to earn high cryptocurrency yields through a lending scheme. User crypto holdings were lent to institutional borrowers through Gemini’s partner, Genesis Global Capital. The pause in Genesis’ loan activities led to Gemini stopping withdrawals from the Earn program, causing uncertainty for customers.
- Genesis filing for Chapter 11 bankruptcy protection added to customer worries.
- New York Attorney General Letitia James announced a $2 billion Genesis settlement.
Genesis Global Capital has court approval to repay $3 billion to creditors, including Gemini Earn program participants. Digital Currency Group (DCG), Genesis’ parent company, will not benefit from the bankruptcy payout plan. Gemini’s decision to return $2.18 billion to customers is a significant step towards resolving the Earn program aftermath.
Bitcoin Market Update
Currently, the largest cryptocurrency, Bitcoin, is valued at $67,750. In the past 24 hours, it has shown sideways price movement with minimal fluctuations compared to the previous day’s closing price.
Hot Take: Gemnini’s Asset Return Signals Recovery
The move by Gemini to return $2.18 billion of digital assets to customers indicates a positive step towards resolving the impact of the paused Earn program. This action brings relief and closure to affected users who have been waiting for their funds for a considerable period. It also demonstrates the commitment of Gemini to address customer concerns and uphold trust in the crypto space.
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