Users of the defunct Gemini Earn platform may not receive their full funds back
Gemini Earn users who have been waiting for their funds to be returned may be disappointed. A restructuring plan has revealed that customers might only receive 61% of the value of their crypto from January 19, 2023, the date Gemini filed for bankruptcy.
Reorganization Plan Causes Controversy
The proposed reorganization plan by Gemini has drawn criticism. Analyst James Seyffart described it as potentially brutal and a worst-case scenario. Even at a possible 100% return, it would still be significant based on current prices.
Gemini filed a plan of reorganization in bankruptcy court on December 13. The plan outlines potential distributions to Earn users, estimating a recovery range of 61-100% of their account balance. Users were given instructions to review and vote on the plan by January 10, 2024.
Responses to the Plan
The proposed recovery plan has received colorful responses from users. Some have called for a rejection of the plan and full reimbursement of assets, expressing frustration with the process and accusing Gemini of deception.
One user asked where the other 41% was and demanded the return of all funds. Another user criticized the recovery range, noting that BTC and ETH had doubled since the petition date.
Gemini’s Troubles
In January, Gemini was charged by the US Securities and Exchange Commission for unregistered securities offerings through its Earn program. In February, the Earn program launched to allow retail investors to earn interest on their crypto assets.
Gemini also faced claims from customers regarding misleading information about the FDIC status of their GUSD stablecoin deposits. In February, Gemini and Genesis reached a $100 million agreement over the Earn program.
Hot Take: Users Could Face Disappointment with Gemini Earn Recovery Plan
Gemini Earn users hoping for a full recovery of their funds may be in for disappointment. The proposed reorganization plan by Gemini has sparked controversy, with customers potentially receiving just 61% of the value of their crypto. Responses to the plan have been critical, with calls for full reimbursement and accusations of deception. Gemini’s troubles also include charges from the SEC and claims of misleading information. The outcome of the vote on the recovery plan remains uncertain, but it could have significant implications for affected users.
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