Gemini Earn Users Recovered Over $2 Billion

After announcing it in February, Gemini finally compensated its customers affected by the ban on its Gemini Earn product. Gemini's compensation is $2.18 billion.

Gemini Earn: Gemini has paid users over $2 billion in refunds

After announcing it last February, the Gemini exchange has finally refunded funds to its customers affected by the ban on its product Gemini Earn, which it had launched in cooperation with Genesis and its parent company, the Digital Currency Group.

The value of the coins that Gemini returns to customers of its product, which has caused numerous problems and is the subject of lawsuits, amounts to $2.18 billion at the current exchange rate.

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After FTX BreakdownA number of businesses have been affected due to blocked liquidity. These companies include Genesis, a subsidiary of the Digital Currency Group (DCG), founded by Barry Silbert.

Gemini Exchange's relationship with the Barry Silbert Group dates back to the association of Gemini and lending company Genesis, formerly affiliated with the group through the "Gemini Earn" program. Which has enabled hundreds of thousands of users to earn income from Their cryptocurrencies. However, Genesis went bankrupt after the successive collapses of Terra Luna, 3AC, Celsius and finally FTX. Which means that this company owes more than a billion dollars to the Gemini Stock Exchange, which found itself in a reckless liquidity crisis.

After several months of litigation, the customers affected by this case finally obtained a refund of 2.18 billion dollars. This equates to the current price of 97% of the amounts owed. As previously agreed, the remaining 3% will be returned over the next 12 months.

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Unlike FTX, whose compensation plan remains controversial, Gemini customers are compensated for as much cryptocurrency as they had at the time of the withdrawal ban. And not based on current prices.

Initial distributions are in-kind, meaning if you lend Bitcoin through the Earn program, you will receive Bitcoin currency One in return. This means you will receive any increase in the value of your assets since you loaned them through the Earn program.

He said that if Gemini had done what FTX did, users would have been deprived of a billion dollars. Compared to the exchange rate when Genesis stopped withdrawals.