Earn users have received an impressive initial payout of $2.18 billion in digital assets, representing 97% of what they were owed. This distribution is a significant milestone in the recovery process that began when Genesis stopped withdrawals. The assets returned to users were calculated based on their value as of May 28, 2024, at 10 AM ET, resulting in a remarkable 232% recovery since withdrawals were halted. This amount surpasses the value held when withdrawals were paused by $1 billion, ensuring that users not only receive their original lent assets but also any appreciation in value.
The distribution became possible after reaching a crucial settlement with Genesis and other creditors involved in the Genesis bankruptcy proceedings. This agreement is pivotal in guaranteeing that all Earn users will eventually receive 100% of their digital assets. In addition, Gemini has contributed $50 million to support the recovery efforts for Earn users.
Today’s distribution covers around 97% of the digital assets in the Earn program, with plans to distribute the remaining balance over the next 12 months. The community has shown great enthusiasm for this successful initial distribution, highlighting the potential for positive resolutions even in challenging circumstances.
The underlying issues that led to the Genesis bankruptcy were identified as traditional financial fraud, exacerbated by a lack of regulatory clarity, rather than inherent problems within the cryptocurrency industry. Looking ahead, industry leaders, including Gemini, are advocating for more explicit regulations that promote innovation and ensure consumer protection in the cryptocurrency space.
