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Winklevoss’ Gemini cryptocurrency exchange returns $2.2 billion to users
Tyler Winklevoss and Cameron Winklevoss (LR), creators of cryptocurrency exchange Gemini Trust Co. on stage at the Bitcoin 2021 Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood on June 4, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Customers with funds locked in crypto exchange Gemini’s defunct crypto lending program will finally start getting their money back.
The company, owned by twin tech billionaires Cameron and Tyler Winklevoss, announced Wednesday that it will return $2.18 billion of their digital assets to users of the Earn program, for which it suspended withdrawals in November 2022.
“Today we are pleased to inform you that initial distributions of Earnings – approximately 97% of the digital assets owed to you by Genesis as of the date of suspension (November 16, 2022) – are now available in your Gemini account,” Gemini will tell the its customers via email Wednesday.
“This follows our previous announcement that we have reached a settlement with Genesis and other creditors in the Genesis bankruptcy, which will result in all Earn users receiving 100% of their digital assets in kind.”
The email adds: “This means that if you lent one bitcoin into the Earn program, you will receive one bitcoin in return. And it means you will receive any increase in the value of your assets since you lent them to the Earn program.” .”
At $2.18 billion, the distribution of funds 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 returns on their coins by storing them in the Gemini scheme. Gemini then lent clients’ cryptocurrencies to institutional borrowers through Genesis Global Capital, its preferred lending partner.
In November 2022, Genesis Global Capital suspended the origination and redemption of new loans, forcing Gemini to stop withdrawals from its Earn program. Genesis filed for Chapter 11 bankruptcy protection last January in federal court in Manhattan.
Last week, New York Attorney General Letitia announced a $2 billion deal with Genesis to repay defrauded investors.