Gemini Earn users will get back $2.18 billion of their crypto in-kind, Winklevoss-owned exchange says

Gemini Earn users will get over $2 billion of their crypto back in kind, more than a year after the lending program folded, crypto exchange Gemini said in a statement.

Those funds will be distributed in kind, meaning Gemini Earn customers who lent one bitcoin will receive one bitcoin back, the Winklevoss twin-owned exchange said on Wednesday. The distributions also represent a 232% recovery from when withdrawals were halted in November 2022, Gemini said.

“We are thrilled that we have been able to achieve this recovery for our customers. We recognize the hardship caused by this lengthy process and appreciate our customers’ continued support and patience throughout,” said Cameron Winklevoss, co-founder and president of Gemini, in a statement. 

Gemini launched the Earn program in 2021, allowing customers to loan their crypto to now-bankrupt Genesis Global Capital, LLC and earn up to 7.4% APY. Genesis Global Holdco filed for bankruptcy protection in January 2023 after taking a financial hit following the collapses of crypto hedge fund Three Arrows Capital and crypto exchange FTX in 2022. 

Gemini Earn customers can expect to receive the rest of their "asset balance" within the next year, the company said on Wednesday. 

Lawsuits

The two firms have also been wrapped up in lawsuits over the past year. The U.S. Securities and Exchange Commission sued the two in January 2023, arguing that the Earn program constituted an unregistered offer and sale of securities under U.S. law. Gemini and Genesis have both moved to dismiss the lawsuit.

Separately, the New York Attorney General's Office has also sued Gemini, Genesis Global Holdco and its parent company, Digital Currency Group, over the crypto lending program.

In a lawsuit with the New York State Department of Financial Services, Gemini agreed to pay a $37 million fine and return $1.1 billion to Gemini Earn customers in February as part of a settlement agreement. The New York regulator said Gemini failed to vet or monitor Genesis Global Capital, which was not registered with the regulator.