The companies Genesis and Gemini have returned more than $2 billion in cryptocurrency to their customers.

By Dietrich Knauth

“Breaking barriers, the insolvent cryptocurrency loan provider Genesis and cryptocurrency marketplace Gemini have effectively reimbursed $2 billion worth of cryptocurrency to 232,000 individual clients through their Gemini Earn program. On Wednesday, Gemini declared that this endeavor has resulted in an astonishing 242% yield on assets that were held since January 2023.”

While other businesses in the cryptocurrency industry went bankrupt due to a market crash in 2022, Genesis was able to return customers’ crypto assets instead of selling them off and providing cash reimbursements.

Customers who lent assets to Genesis, such as Bitcoin, will receive the full amount back, profiting from the substantial increase in cryptocurrency prices. For example, the value of Bitcoin has more than tripled since January 2023, surpassing $67,000.

Cameron Winklevoss, one of the co-founders of Gemini, shared his happiness regarding the successful recovery. He stated, “We are delighted to have successfully recovered our customers’ funds. We understand the difficulties caused by this extensive process and are grateful for our customers’ ongoing support and patience.”

Gemini users should anticipate receiving 97% of their refund right away, while the remaining balance will be issued over a 12-month period.

Genesis initially expected a 77% restitution for its clients, which included more affluent investors who were not participating in the Gemini Earn program. The company’s current focus is on allocating assets to its remaining debtors.

In November of 2022, customers participating in the Gemini Earn program were able to earn interest on their crypto assets by lending them to Genesis. However, when Genesis froze their accounts, the collective worth of assets involved was evaluated at approximately $940 million.

Letitia James, the Attorney General of New York, has previously alleged that the Gemini Earn program is fraudulent. As a result, she has filed a lawsuit against Genesis, Gemini, and Digital Currency Group, the parent company of Genesis.

After reaching an agreement with Genesis in February, James made sure that Earn clients would receive their payments before any other creditors. This agreement caused Genesis’s plans to resume functioning to be interrupted and resulted in a change to a bankruptcy liquidation approach.

Although faced with difficulties, the achievement of returning funds to clients is a noteworthy accomplishment for Genesis and Gemini in the realm of cryptocurrency.

Dietrich Knauth reporting, edited by Josie Kao and David Gregorio.