Bitcoin
Winklevoss Gemini Crypto Exchange Returns $2.2 Billion to Users
Tyler Winklevoss and Cameron Winklevoss (LR), creators of cryptocurrency exchange Gemini Trust Co., on stage at Bitcoin Convention 2021, a cryptocurrency conference held at the Mana Convention Center at Wynwood in Miami, Florida, on June 4, 2021.
Joe Raedle | Getty Images
Customers with funds locked in Gemini’s now-defunct crypto lending program will finally start getting their money back.
The company, which is owned by billionaire tech twins Cameron and Tyler Winklevoss, announced on Wednesday that it will return $2.18 billion of its digital assets to users of the Earn program, for which it halted withdrawals in November 2022.
“Today, we are pleased to inform you that Earn’s initial distributions – approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) – are now available in your Gemini account,” said Gemini. inform your customers via email on Wednesday.
“This follows our previous announcement that we have reached an agreement with Genesis and other creditors in the Genesis bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in cash.”
The email adds: “This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back. And that means you’ll receive any and all increases in the value of your assets since you lent them to the Earn program.”
Worth $2.18 billion, the fund distribution represents a 232% recovery for users since Gemini froze withdrawals for customers of its Earn program 18 months ago.
First launched in 2021, Earn allowed customers to earn high yields on their coins by storing them in the Gemini scheme. Gemini then lent crypto clients to institutional borrowers through Genesis Global Capital, its preferred lending partner.
In November 2022, Genesis Global Capital halted the origination and redemption of new loans, forcing Gemini to halt withdrawals from its Earn program. Genesis filed for Chapter 11 bankruptcy protection last January in Manhattan federal court.
Last week, New York Attorney General Letitia James announced a $2 billion deal with Genesis to reimburse defrauded investors.