Genesis and Gemini Return Over $2 Billion to Crypto Customers

Genesis and Gemini's Remarkable Recovery

Genesis and Gemini have successfully returned over $2 billion in cryptocurrency to 232,000 retail customers involved in the Gemini Earn program. This marks a significant recovery effort, providing customers a 242% return on their locked assets since January 2023. Unlike many crypto firms impacted by the 2022 market crash, Genesis managed to return the exact cryptocurrency rather than converting assets to cash.

Customer Benefits Amid Market Fluctuations

Customers who lent Bitcoin to Genesis have received their original Bitcoin back. This has proven beneficial as Bitcoin's price has surged, more than tripling to over $67,000 since the company declared bankruptcy. Gemini has expressed satisfaction with achieving this recovery, acknowledging the prolonged process and customer patience.

Immediate and Future Repayments

Gemini customers are set to receive approximately 97% of their repayment immediately, with the remainder expected within the next 12 months. Genesis initially projected a 77% recovery for its customers, including larger investors outside the Earn program.

Legal Challenges and Settlements

The New York Attorney General alleged that the Gemini Earn program misled investors, leading to a lawsuit against Genesis, Gemini, and Digital Currency Group (DCG). A settlement was reached, prioritizing repayment to Earn customers before other creditors.

Impact on Business Operations

The lawsuit affected Genesis's plans to resume business, prompting a shift towards bankruptcy liquidation. DCG's argument to repay customers at January 2023 values was overruled, ensuring excess value from crypto price increases benefited Genesis customers. This development highlights the complexities and legal challenges within the cryptocurrency industry.