Gemini settled with Genesis and other creditors in the bankruptcy case. They pledged to return all digital assets to Earn program users. Pending court approval, users will receive over $1.8 billion in assets, marking a significant victory for them.
The settlement means Earn users will get their digital assets back at the same amount they originally lent, even if the assets have gone up in value since then. This not only restores the assets’ original value but also adds $700 million more compared to when withdrawals stopped in November 2022.
Gemini’s Resolution for Earn Program Users
Gemini‘s agreement promises Earn users a 97% return of assets within about two months after court approval, with the remaining balance settled within a year. The company has been actively negotiating for the past 15 months and contributed $40 million towards asset recovery efforts.
Facilitated by the New York Department of Financial Services (NYDFS), the settlement adopts a coin-for-coin recovery approach, hailed by Bloomberg ETF analyst James Seyffart as a significant win for users. Seyffart highlighted the potential for users to receive their digital assets back in full, even if the assets have appreciated since the time they were lent.
Gemini’s legal journey with Genesis Global Capital (GGC) sheds light on the challenges faced by the Earn program. Following Genesis’s bankruptcy in January 2023, which served as the program’s backend service provider, Gemini navigated regulatory and financial obstacles to ensure asset recovery for Earn customers. This effort culminated in the proposed settlement, marking a crucial step towards resolving the program’s complexities.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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