Gemini Earn Depositors Made Whole
Today, Gemini Earn users received $2.18B of their digital assets in a recovery from when Genesis, a crypto broker involved in Gemini Earn, halted withdrawals in 2022.
What’s the scoop?
- Then versus Now: $2.1B represents a 232% recovery in the fiat value of assets from when Genesis initially halted withdrawals, meaning users received a total of $1B more than they initially deposited. Gemini personally added $50M to the Earn users’ recovery.
- Future Distribution: This still only accounts for 97% of the assets owed to Earn users, with the remaining balances to be received within the next 12 months.
Bankless take
Gemini Earn’s return comes in the wake of the Genesis bankruptcy resolution, marking a bright spot in rectifying the fallout from the last cycle’s fraud. Further, it puts the FTX claims to shame, returning assets in-kind at their present-day prices — i.e. 1 BTC when Genesis halted withdrawals = 1 BTC at present-day prices. Overall, this recovery helps turn a new leaf for the industry, while still reminding us of the extensive efforts needed to recover from fraud and contagion.
good karma and solid commitment from @tyler and @cameron where @gemini itself has filled a $50m gap caused by losses by DCG/genesis, to make all their earn users whole. this is they way to show responsibility and go above and beyond. kudos
— Adam Back (@adam3us) May 29, 2024