Gemini crypto exchange returns $2.2 billion to users after an 18-month withdrawal pause

Customers with funds frozen in Gemini’s now-defunct crypto lending program will soon begin receiving their money back.

The company, owned by tech billionaire twins Cameron and Tyler Winklevoss, announced on Wednesday that it will return $2.18 billion of its digital assets to users of the Earn program, which had paused withdrawals in November 2022.

“Today, we are pleased to inform you that initial Earn distributions — approximately 97% of the digital assets owed to you by Genesis as of the suspension date (November 16, 2022) — are now available in your Gemini account,” Gemini will inform its customers via email on Wednesday.

“This follows our previous announcement of a settlement with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind.”

The email adds: “This means that if you lent one bitcoin in the Earn program, you will receive one bitcoin back. It also means you will benefit from any increase in the value of your assets since you lent them into the Earn program.”

At $2.18 billion, the fund distribution represents a 232% recovery for users since Gemini froze withdrawals for customers of its Earn program 18 months ago.

First launched in 2021, Earn allowed customers to earn high yields on their coins by storing them in Gemini’s scheme. Gemini then lent customers’ crypto to institutional borrowers through Genesis Global Capital, its lending partner of choice.

In November 2022, Genesis Global Capital paused new loan originations and redemptions, leading Gemini to halt withdrawals from its Earn program. Genesis filed for Chapter 11 bankruptcy protection last January in Manhattan federal court.

Last week, New York Attorney General Letitia James announced a $2 billion settlement with Genesis to repay defrauded investors.

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