June 5, 2024
Latest Cryptocurrency News

Gemini’s $2.18 Billion Reimbursement for Earn Program Users

Gemini, a leading cryptocurrency exchange, has initiated the reimbursement process for users affected by the closure of its Earn lending program. In a significant development, the exchange disbursed $2.18 billion in digital assets to users on May 29, signaling a remarkable 97% recovery of owed assets.

This reimbursement follows a tumultuous period stemming from the suspension of withdrawals by Genesis, Gemini’s former Earn partner. This withdrawal led to a liquidity crisis and subsequent bankruptcy filing.

Genesis Settlement Yields Unprecedented Recovery

The fund distribution stems from a settlement agreement reached with Genesis and other creditors involved in the bankruptcy proceedings.

Genesis Global, affiliated with the Digital Currency Group, declared bankruptcy in January 2023 amidst mounting financial challenges.

However, a recent court ruling sanctioned the return of $3 billion in cash and cryptocurrency to creditors, including Gemini Earn users, marking a significant milestone in crypto bankruptcy proceedings.

Regulatory Scrutiny and Investor Protection

The closure of the Earn program also drew attention from regulatory authorities. New York Attorney General Letitia James announced a $2-billion settlement with Genesis to address investor fraud claims.

Moreover, Genesis also faced accusations of misleading investors who deposited over $1.1 billion through the Gemini Earn program. Gemini emphasized that the Genesis bankruptcy was not indicative of broader issues within the crypto industry but rather highlighted the challenges of financial fraud and regulatory ambiguity.

Gemini’s commitment to reimbursing users underscores its dedication to maintaining trust and transparency in the cryptocurrency ecosystem. The substantial recovery achieved through the settlement with Genesis signifies a positive outcome amidst the challenges faced by investors in the wake of crypto-related bankruptcies.

While the crypto landscape continues to evolve, regulatory clarity and investor protection remain paramount concerns for industry stakeholders.

Image by jannoon028 on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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