Genesis Returns $2.2B in Crypto Assets to Lending Program Participants

cryptonews.com:

Defunct crypto lender Genesis distributed $2.18b worth of crypto to 232,000 users enrolled in Gemini Earn, an interest-accruing lending program. The distribution followed a New York bankruptcy judge approving the Chapter 11 plan last week.

Gemini said in a post on X that nearly all (97%) of the digital assets that were owed from the Gemini Earn program, as part of the initial payout, are now available in users’ accounts. It comes 18 months after after the program’s suspension in Nov. 2022.

The figure being returned to Earn users is more than initially expected. In February, Gemini and Genesis reached a settlement to distribute $1.8b to users. The distribution was supposed to begin within two months, but it depended on 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 return of 7.4% on deposits. However, Gemini was forced to shut down Earn in Jan. 2023 after Genesis failed to repay over $900m in assets owed to Gemini.

Today, Earn users received $2.18 billion of their digital assets in kind. These initial distributions represent:

• 97% of digital assets owed to Earn users
• $1 billion more than when Genesis halted withdrawals
• A 232% recovery from when Genesis halted withdrawals…

— Gemini (@Gemini) May 29, 2024

All Earn users will receive 100% of their digital assets back in kind, according to the post.

“This means, for example, that if you had lent one Bitcoin in the Earn program, you will receive one Bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program,” Gemini said.

While most of the funds have been