On 29 May 2024, the Gemini crypto exchange, founded by Tyler and Cameron Winklevoss (CEO and President, respectively), reported a significant development for users of its Earn program. According to a blog post published by the company, Earn users received $2.18 billion worth of digital assets. This recovery, which represents 97% of the digital assets owed to users, marks an important step following the Genesis bankruptcy.

Significant Recovery Details

The announcement from Gemini outlined several key points:

  • 97% Recovery: Users in the Earn program received 97% of their digital assets.
  • $1 Billion Increase: The total recovered assets exceeded the initial amount by $1 billion when Genesis halted withdrawals.
  • 232% Recovery Rate: The recovery rate stood at 232%, compared to the value when withdrawals were halted by Genesis.

The valuation of these digital assets is based on their prices as of 28 May 2024, at 10 am ET.

Unprecedented Recovery

Tyler and Cameron Winklevoss characterized this recovery as unprecedented, not only within the cryptocurrency space but also in the broader context of financial bankruptcies. This follows an earlier announcement about a settlement with Genesis and other creditors involved in the Genesis bankruptcy, which ensures that all Earn users will eventually receive 100% of their digital assets back in kind.

For instance, if a user had lent one bitcoin to the Earn program, they will receive one bitcoin back, including any appreciation in value since the time it was lent. Gemini has also contributed $50 million to the Earn users’ recovery, indicating a direct involvement in facilitating this restitution.

Future Steps and Outlook

The initial distributions account for roughly 97% of the assets in the Earn program. Users are expected to receive the remaining balances within the next 12 months.

The Winklevoss twins acknowledged the challenges and delays in the recovery process and expressed gratitude for the users’ patience. They also emphasized that the Genesis bankruptcy was a result of traditional financial fraud and a lack of regulatory clarity, rather than issues intrinsic to the cryptocurrency sector.

Broader Implications

The announcement underscored Gemini’s commitment to advocating for clear regulations and consumer protection in the cryptocurrency industry. The Winklevoss twins stated their intention to continue fighting for regulatory clarity to foster innovation while protecting consumers.