Gemini has started distributing assets to users with locked funds on Genesis Global. The latest update from Cameron and Tyler Winklevoss confirms that Earn users have received $2.18 billion of their digital assets in kind.
The Gemini Comprehensive Repayment Plan
As revealed by Gemini, Earn users received $2.18 billion of their cryptocurrency in kind. The firm said this initial distribution “represent 97% of digital assets owed to Earn users, $1 billion more than when Genesis halted withdrawals, and a 232% recovery from when Genesis halted withdrawals.”
This achievement has been hailed as an extraordinary recovery in the context of both crypto and general bankruptcies. In the aftermath of the settlement with Genesis, as well as other creditors in the Genesis Bankruptcy, Gemini says it is working to ensure repayment.
Notably, all Earn users will receive 100% of their digital assets back in kind. That is, if users had lent one Bitcoin through the Earn program, they will now receive one Bitcoin back, including any appreciation of the assets since they were lent out.
In a bid to guarantee seamless resolution, Gemini has contributed $50 million to facilitate the recovery for Earn users. While acknowledging the challenges users faced, especially during the extended period of the litigation, the Winklevoss twins expressed their gratitude for the users’ ongoing support and patience.
Legal Resolution and Gemini’s Regulatory Advocacy
On May 21, Judge Sean Lane approved the bankruptcy repayment plan of Genesis Global Capital to distribute billions to its creditors. The Winklevoss twins emphasized that the Genesis bankruptcy was not indicative of a problem with cryptocurrency itself but was a result of traditional financial fraud and insufficient regulatory clarity.
Meanwhile, Gemini assured its users that it remains committed to advocating for clear regulations that support both innovation and consumer protection.
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