The post Gemini to finally pay Earn clients. Is it the end of a 1.5 year-conflict? appeared on BitcoinEthereumNews.com.

The case of clients’ money from Gemini’s Earn program, frozen for a year and a half, is finally moving toward a resolution. On May 17, Judge Sean H. Lane approved Genesis’ Chapter 11 bankruptcy plan. The decision will allow the firm to return customer funds frozen on the platform since November 2022. The platform is expected to return about $3 billion to creditors in cash and crypto assets. According to court documents, Gemini will begin issuing refunds to Earn members by the end of May. The payment decision comes from a judge who dismissed a lawsuit brought by Digital Currency Group (DCG) and particular interest group Genesis Crypto Creditors. DCG previously argued that all claims should have been valued in U.S. dollars when the company filed for bankruptcy in January 2023. Where it all started In 2020, Gemini and Genesis agreed on mutually beneficial cooperation terms. The exchange offered its clients in the U.S. to earn an interest from their crypto assets, which Genesis would pay. Since February 2021, the Earn program has been operating in full force. Gemini acted as an intermediary between Genesis and private investors. However, in November 2022, the cryptocurrency community was faced with the collapse of the FTX exchange and a significant drop in the prices of Bitcoin (BTC) and leading altcoins. Users were promised returns of up to 13%, but later, problems arose amid the market downturn 2022, and Genesis Global Capital was forced to freeze client assets. On Nov. 16, 2022, Genesis notified customers about the temporary suspension of repayments and issued new loans due to market turmoil and the collapse of FTX. Because of this, Gemini was forced to limit customer payments using a particular Gemini Earn program. Genesis’ debt to these clients on the Gemini platform amounted to $900 million. At…

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Filed under: News - @ May 22, 2024 9:22 pm