Gemini strikes deal to return all assets ‘in kind’ to Earn users instead of historic dollar equivalent
Crypto exchange Gemini said Earn users would receive “100% of their digital assets back in kind” following an in-principle agreement with bankrupt Genesis and other creditors of the failed lender, according to a Feb. 28 statement.
The firm explained:
“This means, for example, that if you had lent one bitcoin in the Earn program, you will receive one bitcoin back as part of this settlement. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program.”
Gemini furthered that the settlement would return over $1.8 billion worth of crypto, surpassing the amount frozen during the withdrawal suspension in November 2022 by $700 million.
The exchange stated that the agreement is pending finalization and requires approval from the Bankruptcy Court.
If the Court grants this approval, Earn users will receive 97% of their assets within two months, with the remaining 3% to be disbursed over the subsequent 12 months.
“Gemini thanks the New York Department of Financial Services (DFS) for its role in this settlement, which delivers a coin-for-coin recovery for Earn users,” it added.
Community welcomes news
This development has garnered widespread approval from the crypto community, considering the significant growth in the crypto market since the issues began in November 2022. Since then, Bitcoin’s price has surged from under $20,000 to more than $60,000, while Ethereum’s price has also experienced a notable increase to approximately $3,500 as of press time.
Conor Grogan, a director at Coinbase, said this was massive news for the industry, adding that it would be “amazing for retail investors” to get the total value of their assets.
Ram Ahluwalia, the co-founder and CEO of digital asset management firm Lumida, said:
“[Gemini Earn uses] were forced long, by hook or crook, [on] the best-performing asset class. In a twist of fate, the bankruptcy prevented anyone from selling at the bottom.”
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Filed under: Bitcoin - @ February 29, 2024 11:22 am