Gemini Earn, well-established in the decentralized finance (DeFi) scene, recently pledged an incredible $2.18 billion crypto payout. The payout aligns with their principle of maintaining an equivalence between loans given and paybacks received. It marks a substantial shift toward DeFi becoming the norm for money management, bringing economic freedom closer within investors’ grasp.
Originally launched in 2021, Gemini initiated a unique earnings opportunity to lend digital currencies to Genesis Global Capital in return for an annual yield up to 7.4%. A series of unfortunate events such as the bankruptcy of Genesis Global Capital led to a suspension of the platform’s services, and users could only access the remnants of their initial investments.
Despite these challenges, Gemini is tirelessly working to recoup lost funds and is committed to providing value and a sense of security to its user base in the future. They plan to distribute over $2 billion in cryptocurrencies to its users, a 232% increase since the service shutdown in November 2022, pointing to their efforts in regaining users’ faith and adjusting to an ever-evolving crypto market.
Following considerable financial losses due to the collapse of Three Arrows Capital and FTX, Genesis Global Holdco filed for bankruptcy protection in 2023.
Gemini Earn’s commitment to $2.18 billion DeFi payout
With regulatory authorities’ support, the company initiated a robust restructuring plan to handle these financial obstacles while preserving as much value as possible for its stakeholders. A dedicated Claims Resolution Team was established to manage individual user claims and ensure fair asset distribution.
Despite these trials, Genesis Global Holdco remained committed to maintaining transparency in the recovery process, with substantial updates provided to Gemini Earn users. By the close of 2023, a significant percentage of Gemini Earn users had received their remaining asset balances, and the company continued to work earnestly into the next year to cover the remaining distributions.
However, 2023 came with a new set of challenges as both Genesis and Gemini faced a lawsuit from the U.S. Securities and Exchange Commission. Both were accused of their Earn scheme being an unregistered securities offer and sale under US law. Furthermore, legal proceedings were initiated by the New York Attorney General’s Office against Genesis Global Holdco, Gemini, and their parent company, Digital Currency Group, for alleged crypto lending operational misconduct.
Following these allegations, Gemini decided to settle with the New York State Department of Financial Services, agreeing to a hefty $37 million fine and a staggering $1.1 billion reimbursement to users. This situation has resulted from allegations that Gemini failed to carry out adequate screening or supervision of Genesis Global Capital’s practices.
