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Customers of the Gemini Earn program now find themselves in an unforeseen beneficial situation following an announcement that promises to repay 100% of their digital assets “in kind.”
Genesis's involvement with Gemini
The Genesis Bankruptcy saga has been a thorn in the side of many of its creditors and crypto enthusiasts since its onset. For those involved in Gemini's Earn program, which allowed users to lend their digital assets for interest, the halting of withdrawals in November 2022 due to Genesis's bankruptcy was a huge blow.
Many users found themselves in limbo, unsure if they would ever see their assets again.
However, Gemini's recent announcement has brought a glimmer of hope to those affected. The company stated that if the settlement in principle is approved by the bankruptcy court, Earn users will receive 100% of their digital assets back in kind.
This means that if a user had lent out one Bitcoin, they will receive one Bitcoin back, along with any appreciation in value since they entered the Earn program.
Implications amid Bitcoin boom
The timing of this announcement could not be more ideal, especially given the current surge in the value of Bitcoin. As James Seyffart, an analyst at Bloomberg, pointed out, the difference in value between when the withdrawals were halted in 2022 and now is staggering.
For instance, the price of Bitcoin has soared from $20,000 to $61,000, while Ethereum has jumped from $1,500 to $3,500. This means that users stand to receive more than they initially lent out, potentially reaping substantial profits in the process.
The promise of a coin-for-coin recovery is a beacon of hope for Earn users who have been patiently waiting for resolution. Gemini's commitment to ensuring that users receive their assets back in full, though born out of a settlement with the New York Department of Financial Services (NYDFS), is commendable and speaks volumes about the company's integrity in navigating challenging situations.
While the announcement is undoubtedly cause for celebration, it is essential to temper expectations with a dose of reality. Gemini has cautioned that the settlement in principle is subject to definitive documentation and approval by the bankruptcy court.
Additionally, the process could take up to two months to complete, with users expected to receive approximately 97% of their assets in kind within that time frame. The remaining balance will follow within the next 12 months.
Alex Dovbnya
Yuri Molchan
Vladislav Sopov
