Pretty big news for Gemini Earn customers who have been waiting and waiting for resolution from Gemini or Genesis’ bankruptcy.
It appears investors will be made whole, 100%. Again, the money isn’t in the bank, but the sale of the GBTC shares should generate enough in sale proceeds to cover the funds “defrauded” by Genesis.
Any Earn customers out there?
Email just received from Gemini Earn that they’re paying out $700 million more than the original $1 billion in customer funds, given back at market rates.
Pretty incredible. 100% restitution.
We are pleased and relieved to let you know that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in kind.
This means, for example, that if you had lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program. If approved, we will be returning over $1.8 billion in value (at today’s prices) — $700 million more than when Genesis halted withdrawals on November 16, 2022.
Looking forward, if the Bankruptcy Court approves the settlement in principle announced today, you can expect to receive approximately 97% of your assets in kind within about two months. And you can expect to receive your remaining asset balance within the next 12 months.
The settlement in principle is subject to definitive documentation. This required Bankruptcy Court process could take as long as two months to complete, and we will keep you informed along the way. Gemini thanks the New York Department of Financial Services (DFS) for its role in this settlement, which delivers a coin-for-coin recovery for Earn users.
Team Gemini