Gemini Earn Users Recover All Their Crypto Assets in Settlement with Genesis
Gemini has announced that users of its Gemini Earn program have recovered all their crypto assets, as per the terms of a settlement with Genesis.
This means that users receive exactly the same amount of crypto assets that they had loaned to the Earn program. The asset restitution is done ‘in kind,’ allowing users to retrieve their initial investments in the same form in which they were engaged.
In this settlement, Gemini stated that Earn users benefit from $2.18 billion in crypto assets, representing an average recovery of 232% in dollars since Genesis suspended withdrawals.
To ensure this restitution, Gemini contributed $50 million.
The relationship between Genesis and Gemini has been marked by legal proceedings and regulatory interest, including from the US SEC and the New York Attorney General. In October 2023, Gemini filed a lawsuit against Genesis Global Capital for $1.6 billion concerning 60 million shares of the Grayscale Bitcoin Trust (GBTC) that had been pledged as collateral.
Genesis, on the other hand, pursued Gemini for the recovery of $689 million, alleging preferential transfers that unduly favored Gemini over other creditors.
Later, in March 2024, Genesis Global Capital agreed to pay a civil fine of $21 million to settle SEC charges related to the Gemini Earn program. As part of Genesis’ bankruptcy, a court approved a $2 billion settlement by the New York Attorney General to establish a fund for New York victims who had invested over $1.1 billion through the Gemini Earn program and banned Genesis from operating in the state.
