Gemini has initiated the repayment process for its Gemini Earn program subscribers, returning over $2 billion in cryptocurrency assets.
The firm announced on Wednesday that the Gemini Earn program has begun returning more than $2 billion in cryptocurrency to its subscribers, over a year after it ceased withdrawals.
An important step forward in the aftermath of a time of financial instability is this payout, which guarantees that consumers will receive the cryptocurrency assets that they have lent.
Gemini Earn Begins Funds Distribution, Recovery at 232%
The Winklevoss twins own Gemini, a cryptocurrency exchange, which has started to distribute cash, indicating a 232% recovery rate. The Winklevoss family acknowledged the challenges caused by the delay and expressed gratitude for their customers’ patience.
In 2021, Gemini launched its Earn program in collaboration with Genesis Global Capital, LLC. Because of this agreement, consumers were able to earn an annual percentage yield (APY) of up to 7.4% on their cryptocurrency loans.
It is unfortunate that Genesis Global Holdco, the parent business, submitted a petition for protection under the bankruptcy laws in January 2023. This situation was caused by the collapse of large participants in the cryptocurrency sector, such as 3AC and the FTX exchange, throughout 2022.
These occurrences resulted in the freezing of withdrawals, strained customer relations, and questioned the operational stability of Gemini.
Tyler Winklevoss Defends Crypto Amid Legal Issues
The Gemini Earn program faced opposition from both state and federal authorities when its concerns reached the legal realm.
The Securities and Exchange Commission (SEC) accused the Gemini Earn program of being an unregistered securities offering and launched a lawsuit against it in the previous year.
Both Gemini and Genesis responded by submitting a request to have the allegations dismissed. For additional information, the New York Attorney General’s Office has filed a lawsuit against Gemini, Genesis Global, and Digital Currency Group (DCG) in connection with the lending scheme.
Gemini and the New York State Department of Financial Services reached a settlement that included a fine of $37 million and a commitment to restore $1.1 billion to Gemini Earn customers.
Gemini agreed to the settlement’s terms. Implementation of this agreement was critical in bringing the company’s operations back under control and regaining the stakeholders’ trust. Since the public announcement of this settlement, shares of Gemini Group Global Corp.
(GMNI) have increased by 17.50%. Gemini has reassured its consumers by promising to restore the remaining portion of their “asset balance” within the next year.
Tyler Winklevoss, the co-founder and chief executive officer of Gemini, emphasized that the underlying issue is not intrinsic to bitcoin, but rather stems from traditional financial crime, exacerbated by unclear regulatory frameworks.