Beleaguered crypto companies Gemini and Genesis have received a crucial court nod, paving the way for the return of most digital assets owed to Gemini’s Earn program users. Under a settlement agreement approved by the Bankruptcy Court, Gemini will distribute a staggering 97% of the digital assets frozen since November 16, 2022. This positive development comes as a welcome relief for users who have been waiting months for access to their holdings.
The court’s approval marks a significant milestone in the ongoing saga surrounding Gemini’s Earn program, which offered interest-bearing accounts to users but faced suspension last year due to liquidity issues at Genesis, its lending partner. The suspension sparked concerns and frustration among Earn users, with many left wondering if they would ever see their crypto again.
The settlement outlines a two-pronged approach to returning user assets. The first phase, expected to be completed by early June, will see Gemini distribute nearly all (97%) of the digital assets owed based on the November 16th snapshot. This means users will receive almost all the crypto they had deposited in their Earn accounts before the freeze.
However, the remaining 3% hinges on future recoveries from Digital Currency Group (DCG), the parent company of both Gemini and Genesis. The settlement acknowledges that DCG owes Genesis a significant amount of money, and any successful recoupment efforts will translate into additional distributions for Earn users.
The timeline for these further payouts remains unclear, as it depends on the complexities of the ongoing legal proceedings involving DCG. Nevertheless, the court-approved settlement offers a clear path forward for the vast majority of Earn users to regain control of their digital assets.
For Gemini, the settlement represents a critical step towards regaining user trust. The company has faced intense scrutiny since the Earn program’s suspension, and this move demonstrates their commitment to resolving the situation. It’s important to note that the settlement does not affect the ongoing bankruptcy proceedings of Genesis, which are being handled separately.
The news has been met with cautious optimism from the crypto community. While the return of 97% of assets is a positive development, some users remain concerned about the remaining 3% and the potential delays associated with recoveries from DCG.
Overall, the court’s approval of the settlement agreement marks a significant step forward for Gemini and Genesis. With the distribution of nearly all owed digital assets on the horizon, a sense of closure appears to be within reach for the vast majority of Earn program users.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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