Gemini announced on Wednesday that all its Gemini Earn program users have had their digital assets returned to them in-kind.
In 2022, about 232,000 Earn users lost access to their funds, collectively valued at approximately $940 million. Users who lent out one Bitcoin through the program now get one back. However, the value of Bitcoin has nearly quadrupled since November 2022, although the values of other cryptocurrencies have fluctuated differently.
Gemini’s Payout Contrasts From FTX
Gemini stated that Earn users have collectively received $2.18 billion of digital assets back in-kind. That means a 232% recovery rate since Genesis, Gemini’s partner for the Earn program, halted withdrawals, leading Gemini to pause its Earn withdrawals.
In February, Gemini said it would reimburse customers $1.1 billion. This in-kind payout is in stark contrast to the outcomes of some other crypto bankruptcies.
For instance, the bankrupt crypto exchange FTX expects to return 100% of customers’ funds in US dollars, but this amount is based on the lower crypto prices at the time of its bankruptcy filing.
“We are thrilled that we have been able to achieve this recovery for our customers. We recognize the hardship caused by this lengthy process and appreciate our customers’ continued support and patience throughout,” said Cameron Winklevoss, co-founder of Gemini.
By March 2024, Gemini had agreed to a $21 million settlement with the Securities and Exchange Commission following a conclusive court ruling to resolve Gemini Earn lending program charges.
“It’s important to note that the Genesis bankruptcy was not a crypto problem,” said Tyler Winklevoss, Co-Founder and CEO of Gemini. “It was old-fashioned financial fraud compounded by a lack of regulatory clarity. To that end, we will continue to fight for clear rules and guidance for our industry that foster both innovation and consumer protection. And we will win this fight. The future is bright.”
