Customers with funds locked in Gemini’s defunct crypto lending program are finally seeing their money returned. The company, owned by tech billionaire twins Cameron and Tyler Winklevoss, announced on Wednesday that it will begin returning $2.18 billion worth of digital assets to users of its Earn program.
Withdrawals from the Earn program had been paused since November 2022, leaving many users anxious about the fate of their investments. This move marks a significant step towards resolving the issues faced by the platform’s customers, who have waited 18 months for access to their assets.
However, the decision to return the funds underscores Gemini’s commitment to its users and aims to restore trust in the exchange. The Earn program, which had allowed users to lend their crypto assets in exchange for interest, was popular until the sudden halt of withdrawals raised concerns about the security and liquidity of the funds.
“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. “
“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.”
“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”.
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In the wake of this announcement, Gemini users who were part of the Earn program can expect to start receiving their digital assets back, CNBC Reports
The company has not only taken steps to address the immediate concerns of its customers but is also working to improve its platform’s stability and reliability for the future. This effort to rectify past issues and enhance customer confidence is crucial as the crypto industry continues to evolve and navigate regulatory challenges.
First launched in 2021, Gemini’s Earn program provided customers with the opportunity to earn high yields on their cryptocurrency holdings by participating in the exchange’s scheme.
Through Earn, users could deposit their coins with Gemini, which would then lend these digital assets to institutional borrowers via Genesis Global Capital, its preferred lending partner.
This arrangement allowed customers to benefit from the interest generated by these loans, making it an attractive option for those looking to maximize their crypto returns.
However, the program faced significant challenges in November 2022 when Genesis Global Capital announced it was pausing new loan originations and redemptions.
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This unexpected move created a ripple effect, forcing Gemini to suspend withdrawals from the Earn program, leaving customers unable to access their funds. The halt in withdrawals caused considerable concern among users, who were left in limbo about the status of their investments.
The pause in Genesis Global Capital’s operations highlighted the vulnerabilities and interconnected risks within the crypto lending market.
As a result, Gemini had to navigate the complexities of ensuring the return of its customers’ assets, culminating in the recent announcement to restore $2.18 billion in digital assets to those affected by the Earn program’s suspension.
This development marks a critical juncture for Gemini as it seeks to rebuild trust and demonstrate its commitment to customer security and satisfaction.
By addressing these past issues and implementing measures to enhance the transparency and reliability of its services, Gemini aims to reinforce its position in the competitive cryptocurrency exchange landscape and reassure its users of the platform’s resilience and integrity moving forward.