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Gemini Earn Depositors Made Whole

Depositors in the program get a happy ending to a drawn-out saga.
David C David C May 29, 20241 min read
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Gemini Earn Depositors Made Whole

Today, Gemini Earn users received $2.18B of their digital assets in a recovery from when Genesis, a crypto broker involved in Gemini Earn, halted withdrawals in 2022.

What’s the scoop?

  • Then versus Now: $2.1B represents a 232% recovery in the fiat value of assets from when Genesis initially halted withdrawals, meaning users received a total of $1B more than they initially deposited. Gemini personally added $50M to the Earn users’ recovery.
  • Future Distribution: This still only accounts for 97% of the assets owed to Earn users, with the remaining balances to be received within the next 12 months.

Bankless take

Gemini Earn’s return comes in the wake of the Genesis bankruptcy resolution, marking a bright spot in rectifying the fallout from the last cycle’s fraud. Further, it puts the FTX claims to shame, returning assets in-kind at their present-day prices — i.e. 1 BTC when Genesis halted withdrawals = 1 BTC at present-day prices. Overall, this recovery helps turn a new leaf for the industry, while still reminding us of the extensive efforts needed to recover from fraud and contagion.

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David C

Written by David C

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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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