Gemini to Return $2.18 Billion to Users of Defunct Crypto Lending Program

Gemini, the crypto exchange owned by Cameron and Tyler Winklevoss, has announced plans to reimburse users of its Earn program, which was suspended in November 2022. The company stated on Wednesday that it would be returning $2.18 billion in digital assets to affected customers.

In an email to customers, Gemini confirmed the commencement of initial distributions, representing approximately 97% of the digital assets owed to users as of the suspension date. The email reassured users that they would receive 100% of their digital assets back, with any increase in asset value since lending them into the Earn program also being returned.

Gemini's reimbursement marks a significant recovery for users, amounting to a 232% recovery since withdrawals were frozen 18 months ago. The Earn program, launched in 2021, allowed customers to earn high yields on their cryptocurrency holdings by participating in Gemini's lending scheme, which involved lending crypto to institutional borrowers through Genesis Global Capital, Gemini's lending partner.

The suspension of withdrawals from the Earn program occurred when Genesis Global Capital halted new loan originations and redemptions in November 2022, ultimately filing for Chapter 11 bankruptcy protection in January of the following year.

The recent announcement comes shortly after New York Attorney General Letitia James revealed a $2 billion settlement with Genesis, aimed at repaying defrauded investors.

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