Genesis, a bankrupt crypto lender, and Gemini, a crypto exchange, have returned over $2 billion in crypto to 232,000 retail customers in their jointly managed Gemini Earn program, according to Gemini. This has resulted in customers receiving a 242% return on their locked-up assets since January 2023. Unlike other crypto companies that faced bankruptcy after a market crash in 2022, Genesis was able to return customers’ crypto instead of liquidating a limited pool of assets.
Gemini Customers Benefit from Bitcoin Price Increase
«Customers who loaned one bitcoin to Genesis will get one bitcoin back, benefiting from the coin’s dramatic price increase since the date the company went bankrupt,»
The price of bitcoin has more than tripled since January 2023, rising to over $67,000. Gemini co-founder Cameron Winklevoss expressed his satisfaction with the recovery for customers and appreciated their support throughout the lengthy process. About 97% of the repayment will be made immediately to Gemini customers, with the remainder to be paid within 12 months.
Genesis Customers’ Claims Not Capped at Petition Date Value
«We didn’t cap their claims at the petition date value,» Genesis attorney Sean O’Neal said on Wednesday.
Genesis customers who participated in the Gemini Earn program had loaned their crypto to Genesis and earned interest on their assets. The total value of the Gemini Earn assets was $940 million when Genesis froze customer accounts in November 2022, according to Gemini.
New York Attorney General Lawsuit
New York Attorney General Letitia James has sued Genesis, Gemini, and Genesis’s parent company Digital Currency Group, alleging that the Gemini Earn program was a «scam» that misled investors. A settlement was reached in February, requiring Genesis to repay Earn customers before other creditors. On May 17, a judge overruled DCG’s argument to repay Genesis customers based on the crypto assets’ worth in January 2023.
Summary:
- Genesis and Gemini returned over $2 billion in crypto to 232,000 retail customers through the Gemini Earn program.
- Customers received a 242% return on assets locked up since January 2023.
- Genesis was able to return customers’ crypto instead of liquidating assets due to bankruptcy.
- Gemini customers who loaned one bitcoin will receive one bitcoin back, benefiting from the price increase.
- New York Attorney General Letitia James sued Genesis, Gemini, and Digital Currency Group over the Gemini Earn program.