New York-based cryptocurrency exchange Gemini announced late Wednesday that the parties involved in the bankruptcy case of crypto lending company Genesis 1.1 have agreed to return the users of the platform's income program in digital assets.
“Finally, we have reached an agreement in principle with Genesis and other creditors in the Genesis bankruptcy that, if approved by the bankruptcy court, will result in all income users receiving 100% of their digital assets in kind,” the company wrote.
In the year Founded in 2014 by Cameron and Tyler Winklevoss, Gemini—also known as the Gemini Trust Company—provides not only a cryptocurrency exchange, but a wide range of financial services, including cryptocurrency staking, crypto wallets, cold storage, credit card services, and the Nifty Gateway NFT marketplace.
In October, the Office of the New York Attorney General (NYAG) filed charges in the Southern District of New York Bankruptcy Court against Gemini, digital asset lender Genesis and Digital Currency Group for defrauding investors.
New York Attorney General Leticia James said, “These cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and the victims were middle-class investors.” “Diligent New Yorkers and investors across the country lost more than a billion dollars because they were fed a blatant lie that their money was safe and would grow if they invested in Gemini Income.”
In the year After the collapse of the cryptocurrency exchange FTX in 2022, it swept the cryptocurrency market. One of the companies caught up in the bloodbath is Genesis Trading. In the year In November 2022, Genesis suspended its loan service, warning its customers that it could lead to bankruptcy.
The following week, Gemini sued Genesis for control of $1.6 billion in Greyscale Bitcoin Trust shares.
According to Gemini, participants in the Earn program will receive the amount of bitcoin they originally loaned and any increase in value since then.
“If approved, we will recover more than $1.8 billion (at today's prices),” Gemini said. “Genesis $700 million more than when it stopped spending on November 16, 2022.
As part of the deal, Gemini said the exchange will contribute $40 million to recover users' funds.
Once approved, Gemini continued, Get users can expect to receive approximately 97% of their assets within two months and the remaining asset balance within the next 12 months.
“The settlement is in principle subject to proper documentation,” Gemini warned. “The required bankruptcy court process may take up to two months to complete, and we will keep Earn users informed as it progresses.”
Gemini did not immediately respond to a request for comment.
He said that he understands the problems faced by the customers during the settlement process and the company expressed its appreciation for the patience and support shown to the customers.
“As responsible stewards of the crypto ecosystem, we know that our clients value the ability of their digital assets to survive the ups and downs of crypto market cycles,” Gemini wrote. They were critical to us and our customers.
Edited by Ryan Ozawa.
Stay on top of crypto news, get daily updates in your inbox.
