Gemini, a crypto exchange founded by the twin brothers Tyler Winklevoss and Cameron Winklevoss has stated that many people will find it helpful. After an 18-month break, in which it halted withdrawal on its Earn program, the company is now repaying an astonishing $2.18 billion to its customers, integrating customer experience, supply chain, logistics, and sales force automation software.
Here’s a breakdown of what happened: Gemini’s Earn was a program introduced in 2021 by the exchange that allowed users to earn good yields from their cryptocurrencies by placing them for lending on the platform. In other words, users could extend their tokens to Gemini, which in turn extended them to institutional borrowers via its associate, Genesis Global Capital.
However, in November 2022, the Earn program saw the withdrawal option suddenly turned off. On this, the lending partner of Gemini –Genesis Global Capital, halted new loan originations as well as redemptions. It got worse when Genesis sought protection under Chapter 11 of the United States Bankruptcy Code in January of the following year.
Suspending the withdrawal made many of them worried about the quality of the money they invested.
But now, I have good news to share with you all. Other claims were also made by other creditors, and Gemini has recently come to a settlement with Genesis and other creditors about the bankruptcy case. Hence users will get back their digital at their original form and anyone who borrowed them along with the current value they possess.
Concretely if for example, you lent one Bitcoin via the Earn program, you will get one Bitcoin back. That means that it was $2.18 billion distribution: 232% lift from withdrawals that previously froze that account.
Gemini is now releasing the money back to its consumers; out of the total amount of virtual currency that has been brought back, 97% is now available to consumers in their accounts. Such a decision would be an indication that something is being done to resolve the problem, and confidence in the application can be regained.
The settlement was reached at a time when the New York Attorney General had signed a $2 billion deal with Genesis for Investors who had been exposed to the situation.
Therefore, Gemini’s ability to return the money to its users is a positive development that has rarely been seen in the crypto space. This brings out the need to increase the level of transparency and accountability in the industry so that users can be confident that their hard-earned money is safely coupled with rising uncertainties in the market.
