Gemini Announces Return of Frozen Assets to Earn Users
Crypto exchange Gemini has revealed that users of its defunct Earn product can expect to receive approximately 97% of their frozen digital assets by the end of this month. In a recent statement, the exchange specified that the initial distributions will be made in kind, meaning users will receive back the same amount of assets they had originally invested in the Earn program.
This announcement comes as the failed crypto lender Genesis has received Court approval to return around $3 billion of its customers’ assets. For Earn users, whose assets have been locked since November 2022 due to Genesis’ liquidity crisis, this news brings significant relief.
Gemini’s decision has been well-received by the community, especially considering the substantial increase in asset values since 2022. Bitcoin’s price has soared to over $67,000 on average, while Ethereum has reached over $3,000.
Gemini Earn, an interest-bearing product that faced controversy following Genesis’ bankruptcy filing, was suspended in January 2023 after the termination of Master Loan Agreements with Genesis. Legal action has since been pursued against Digital Currency Group, Genesis’ parent company, on behalf of over 200,000 Earn users. Gemini alleges that Digital Currency Group knew about Genesis’ insolvency in 2022 but failed to disclose this information to investors.
The Earn program also drew regulatory scrutiny from the New York State Department of Financial Services (NYDFS) and the US Securities and Exchange Commission (SEC) for alleged violations of federal securities laws. Gemini has since settled with both regulators.
This development marks a significant step towards resolving the issues surrounding the Earn program and providing closure to affected users.
