Gemini Announces $2.18 Billion Crypto Repayment Plan

Gemini disclosed intentions on Wednesday to pay its creditors with $2.18 billion in bitcoin. For those who had been placed in bankruptcy limbo, Earn users have recovered 232% thanks to this in-kind payment.

Genesis, a division of Digital Currency Group (DCG), Gemini’s lending partner, was involved in the 2022 FTX crisis. More than 230,000 customers were impacted by this unrest, which prevented approximately $940 million in withdrawals from the Earn product.

A protracted legal struggle left Genesis facing bankruptcy. Cameron and Tyler Winklevoss, the co-founders of Gemini, charged Genesis, DCG, and DCG CEO Barry Silbert of misleading investors. The crypto exchange agreed to pay $37 million in penalties and recover $1.1 billion for Earn investors by February after New York authorities sued all three companies.

Resolving Financial Fraud and Ensuring Recovery

In its repayment statement, Gemini emphasized that the issue with Genesis stemmed from “old-fashioned financial fraud compounded by a lack of regulatory clarity,” rather than being a crypto problem. To show good faith, the exchange allocated $50 million to ensure Earn users’ recovery, marking an unprecedented outcome in bankruptcy cases.

Finalizing creditor repayment arrangements are several more troubled companies from the turbulent year 2022 in the cryptocurrency space. In order to make nearly two million creditors whole and take into consideration the fluctuations in cryptocurrency values since obtaining Chapter 11 protection, the FTX estate projects returning up to 142% of client cash.

Gemini’s statement reaffirms its dedication to helping its consumers who are experiencing financial difficulties as a result of the market meltdown. This substantial payback schedule demonstrates the company’s commitment to reestablishing stability and confidence in the cryptocurrency market.