Bankrupt crypto lender Genesis has distributed $2.18 billion worth of crypto to 232,000 users enrolled in Gemini Earn, an interest-earning lending program. The distribution came after a New York bankruptcy judge approved the Chapter 11 plan last week.

Gemini said in a post on This comes 18 months after the program was suspended in November 2022.

The amount returned to Earn users is more than initially expected. In February, Gemini and Genesis reached a settlement to distribute $1.8 billion to users. Distribution was to begin within two months, but was subject to court approval.

Gemini offered an optional program called Earn, where customers could lend their crypto holdings to the company for interest. Launched in early 2021 with Genesis, the program promised a 7.4% return on deposits. However, Gemini was forced to close Earn in January 2023 after Genesis failed to repay more than $900 million in assets owed to Gemini.

According to the post, all Earn users will get 100% of their digital assets back in kind. “This means, for example, that if you lent one Bitcoin in the Earn program, you will get one Bitcoin back. And it means you receive all the appreciation in the value of your assets since you loaned them to the Earn program,” Gemini said. Although most funds have been returned, users can expect to receive the remaining balances within the next year.

Getting the money back to Gemini Earn users has not been a smooth process. Gemini and Genesis disagreed significantly on how to handle the return of assets.

As part of its plan to refund users, Genesis received court approval in February to sell shares it held in a Bitcoin investment fund (Grayscale Bitcoin Trust). The sale involved 35 million shares worth more than $1.3 billion.

As of November 2022, Genesis was unable to repay approximately $1 billion in loans made by Gemini customers through the Earn program. This bankruptcy led to the company filing for bankruptcy just two months later.

Source: https://cryptobenelux.com/2024/05/30/genesis-keert-22-miljard-crypto-terug-aan-schuldeiser-leenprogramma/



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