In a surprising turn of events, bankrupt crypto lender Genesis and crypto exchange Gemini have managed to return over $2 billion in crypto to 232,000 retail customers in their jointly managed Gemini Earn program. This move has given customers an impressive 242% return on assets locked up since January 2023, Gemini announced on Wednesday.
Unlike other crypto companies that faced bankruptcy after the 2022 market crash, Genesis was able to return customers’ crypto to them instead of liquidating a limited pool of assets and paying them back in cash. Customers who loaned one bitcoin to Genesis will receive one bitcoin back, benefiting from the coin’s significant price increase since the company’s bankruptcy. The price of Bitcoin has more than tripled since January 2023, reaching over $67,000.
Gemini co-founder Cameron Winklevoss expressed his excitement over the successful recovery for customers, acknowledging the hardship caused by the lengthy process and thanking customers for their support and patience. Gemini customers will receive approximately 97% of the repayment immediately, with the remainder to follow within 12 months.
The New York Attorney General Letitia James had previously alleged that the Gemini Earn program was a “scam” that misled investors, leading to a lawsuit against Genesis, Gemini, and Genesis’s parent company Digital Currency Group. However, a settlement reached in February required Genesis to repay Earn customers before other creditors, including New York state and Digital Currency Group.
Despite the legal challenges, Genesis and Gemini have managed to navigate the complexities of the bankruptcy process and deliver a positive outcome for their customers, showcasing resilience and commitment to customer satisfaction in the volatile world of cryptocurrency.