Great news for Gemini Earn customers! They’re slated to receive 100% of their assets back, potentially exceeding $1.1 billion, following a settlement with the New York Department of Financial Services (NYDFS). This comes after Genesis Global Capital, Gemini’s partner in the Earn program, declared bankruptcy in January 2023.
As part of a groundbreaking agreement, Gemini will contribute $40 million to Genesis’s bankruptcy proceedings and will also pay $37 million to NYDFS. This commitment aims to ensure that Earn customers will recover their full investment in virtual currency once the bankruptcy process concludes.
The NYDFS highlighted Gemini’s dedication to navigating the bankruptcy proceedings effectively, emphasizing the goal of full recovery for Earn customers. This initiative reflects a significant effort to rectify the implications of the Earn program’s halt and Genesis’s financial woes.
It’s worth noting that Earn was designed to allow customers to earn interest on their cryptocurrency investments, relying on Genesis for backend services. However, the program faced challenges when Genesis suspended customer withdrawals, impacting the financial interests of approximately 200,000 customers.
This resolution marks a pivotal moment for the cryptocurrency investment sphere, showcasing Gemini’s commitment to customer asset security and regulatory compliance amidst the complex landscape of digital finance.
