Gemini recently announced reaching a settlement in principle with Genesis and related creditors. The platform released an official post to share the information with Earn users.
The short post read that Gemini has concluded the Genesis Bankruptcy dispute. If a Bankruptcy Court approves it, every Earn user will get 100% of their digital assets back in kind.
In other words, if a user has lent 1 BTC in the Earn program, they will get the 1 BTC back. It also means that the user will get any and all appreciation for the said asset since the time it was put into the Earn program.
If a court passes the judgment, Gemini will return around 1.8 billion dollars in value (current prices). It will put the exchange 700 million dollars back as Gemini stopped withdrawals back in November 2022.
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Thus, if the settlement goes through, Earn users are expected to get approximately 97% of their assets in kind in 2 months. The remaining balance is expected to be returned in the coming 12 months.
Given the sheer stature of the news, Gemini is gaining traction among crypto enthusiasts. A quick look at any Gemini exchange review tells how the exchange has been in trouble for the past 15 months.
It should be noted that the settlement, in principle, is prone to definitive documentation. Thus, the needed Bankruptcy Court procedure can take over two months to be completed. Gemini has ensured users that it will be sharing every detail throughout the process.
The exchange also thanked the New York DFS (Department of Financial Services) for their role in this case. Gemini has been advocating for Earn users to get back their assets for more than a year now.
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For the settlement, Gemini is also contributing 40 million dollars to Earn customers’ recovery. The exchange ended the post by recognizing how tough the past several months have been for users. The platform assured that it would keep up its best efforts to fetch the most desirable outcome.
