Customers with funds locked up in crypto exchange Gemini’s defunct crypto lending program are finally going to start getting their money back.
The company, which is owned by tech billionaire twins Cameron and Tyler Winklevoss, announced Wednesday that it will return $2.18 billion of their digital assets to users of the Earn program, which it paused withdrawals for in November 2022.
“Today, we are pleased to let you know that initial Earn distributions — approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) — are now available in your Gemini account,” Gemini will tell its customers via email Wednesday.
“This follows our previous announcement that we reached a settlement with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind.”
The email adds: “This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all increase in the value of your assets since you lent them into the Earn program.”
At $2.18 billion, the fund distribution represents a 232% recovery for users since Gemini froze withdrawals for customers of its Earn program 18 months ago.
First launched in 2021, Earn enabled customers to get high yields on their coins by storing them in Gemini’s scheme. Gemini then lent customers’ crypto to institutional borrowers through Genesis Global Capital, its lending partner of choice.
In November 2022, Genesis Global Capital paused new loan originations and redemptions, forcing Gemini to halt withdrawals from its Earn program. Genesis filed for Chapter 11 bankruptcy protection last January in Manhattan federal court.
Last week, the New York Attorney General Letitia announced a $2 billion settlement with Genesis to repay defrauded investors.