Gemini Plans To Contribute $100,000,000 To Earn Users As Crypto Exchange Strikes Deal in Principle With Genesis
A top executive of crypto exchange Gemini is announcing a deal that could see users of its Earn program get back their digital assets that were loaned to crypto broker Genesis.
Gemini co-founder Cameron Winklevoss says that Gemini has signed an agreement with Genesis, its parent company Digital Currency Group, and other creditors that would allow users who had subscribed to the interest-generating Earn program to recover their lost funds.
According to Winklevoss, the agreement was signed in bankruptcy court earlier this week and puts all Genesis creditors on a path that enables the “substantial recovery” of their assets.
Per the Gemini co-founder, the crypto exchange will contribute its own resources to ensure Earn subscribers are compensated fully.
“This plan is a critical step forward towards a substantial recovery of assets for all Genesis creditors. In addition, Gemini will be contributing up to $100 million more for Earn users as part of the plan, further demonstrating Gemini’s continued commitment to helping Earn users achieve a full recovery…
There is still much work to be done to complete this process, including further due diligence of Genesis financials and judicial approval of this plan, but we are confident that we now have a framework in place to execute on.”
Genesis initially filed for bankruptcy in January. Court filings obtained last month revealed that the firm owes more than $3.8 billion to its largest 50 creditors, including Gemini.
Winklevoss said last month that over 340,000 users of the Gemini Earn program were affected by the liquidity challenges that hit Genesis beginning last year.
Previously, Genesis says it is hopeful of successfully emerging from bankruptcy and restarting its operations starting in May.
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Author: Mark Emem
