Winklevoss twins’ owned cryptocurrency exchange Gemini has announced that its Gemini Earn customers will likely recover around $2.18 billion in cryptocurrency, implying a full return on their crypto loans. This assurance should bring relief to those worried about their investments.
Despite the volatility of the crypto market, this announcement reinstates faith in the possibility of full returns on crypto loans. Gemini’s quick response to the concern surrounding their potential lapse aids in the restoration of investors’ faith.
Genesis Global Capital, LLC, the recipient of these loans, is struggling with bankruptcy. The company received loans when the Gemini Earn program launched, which offered an appealing yield but failed to attract enough investors to maintain liquidity. Discussions around possible courses of action, including potential bankruptcy protection, are ongoing.
One year after the lending scheme, Gemini Earn users are expected to receive over $2 billion back from their initial contributions.
Assured full recovery on Gemini crypto loans
Gemini reported a big recovery rate since stopping withdrawals, and the progress thus far has been praised.
Following a financial downfall sparked by the collapse of crypto hedge fund Three Arrows Capital and crypto exchange FTX in 2022, Genesis Global Holdco declared bankruptcy. Gemini Earn users can expect the return of their assets over the next year thanks to the efforts of court-appointed trustee administrators. While this process is gradual, it ensures users are reimbursed in full.
Both Gemini and Genesis have grappled with multiple lawsuits over the past year, including a significant one filed by the U.S. Securities and Exchange Commission accusing the Gemini Earn Program of unauthorized security offers and sales. Despite defending themselves rigorously, these lawsuits have affected their reputations and operations.
Additionally, Gemini agreed to a settlement in a lawsuit initiated by the New York State Department of Financial Services. The settlement included a $37 million penalty and an agreement to return $1.1 billion to Gemini’s customers. Gemini was criticized for its lackadaisical vetting and monitoring processes regarding Genesis Global Capital.
