Gemini Earn users are expected to get back 97% of their assets! U.S. court approves settlement with Genesis

Cryptocurrency exchange Gemini announced on February 29 that it had reached an in-principle settlement with bankrupt cryptocurrency lending institution Genesis and other creditors of the company, claiming that if the settlement plan passes the bankruptcy court With approval, all Earn users will be able to recover 100% of their physical digital assets.

The Bankruptcy Court Orally Approved the Settlement Agreement

According to Gemini’s official website, at a hearing on April 16, the Bankruptcy Court has orally approved the settlement agreement between Gemini, Genesis and other creditors in the Genesis bankruptcy case. The global settlement agreement has written a major milestone for Earn users to get their digital assets back.

Gemini stated that the settlement agreement stipulates that as of the date of suspension of withdrawals (November 16, 2022), the initial return amount allocated to Earn users will be approximately 97% of the digital assets owed to users. It is expected that the initial The rebate will take place at the end of May or early June, and the remaining rebate amount will be recovered from Genesis parent company Digital Currency Group (DCG).

Gemini reminds that Earn users can log in to their Gemini account through the Gemini website or Gemini APP and click "Pending Balance" to view the amount owed by Genesis.

Currently, distributions under the settlement agreement cannot be made until the bankruptcy court issues an order approving the settlement agreement and other conditions of the settlement agreement are met, but Gemini expects that the bankruptcy court will soon issue an order within a few days. Order approving settlement agreement.

Gemini vs. Genesis litigation

Gemini launched the Gemini Earn program in February 2021, allowing Gemini customers to lend cryptocurrency to Genesis in order to obtain interest at an annualized rate of 7.4%, but After FTX collapsed in November 2022, Genesis suspended withdrawals and filed for bankruptcy reorganization in January 2023, causing more than 200,000 Earn customers to suffer heavy losses.

As the largest creditor in the Genesis bankruptcy case, Gemini fell out with Genesis and DCG over the matter. In August last year, it also sued DCG and the group’s CEO Barry Silbert for fraud. In October last year, Gemini, Genesis and DCG was sued by the New York Attorney General's Office, accusing it of defrauding more than 230,000 investors, involving a total amount of nearly US$1.1 billion.

The New York State Department of Financial Services announced a settlement agreement with Gemini at the end of February. Gemini promised to return at least US$1.1 billion to Earn program customers and donate US$40 million to the Genesis bankruptcy case to protect Earn customers. In addition, Gemini agreed to pay a fine of US$37 million to the regulatory agency due to major compliance failures.

Genesis, which is in bankruptcy proceedings, is continuing to work hard to raise funds to repay creditors, including obtaining approval from the bankruptcy court in February to sell Grayscale GBTC shares worth more than US$1.3 billion. This made Grayscale GBTC once face a huge The selling pressure also weighed on the price of Bitcoin.

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