n a significant development for the crypto industry, Gemini has announced a breakthrough agreement that promises to return 100% of digital assets to its Earn program users, marking a critical step towards resolving issues stemming from Genesis' bankruptcy.
The Agreement Details
Gemini's statement on February 28 outlined the terms of the agreement, highlighting that users would receive their digital assets back "in kind." This means participants will get back the exact cryptocurrencies they had lent, including any appreciation since the assets were originally lent out. The deal covers the return of over $1.8 billion in crypto, $700 million more than what was frozen last November.
Court Approval and Distribution Plan
The agreement awaits finalization and must be approved by the Bankruptcy Court. Upon approval, Earn users can expect to receive 97% of their assets within two months, with the remaining 3% distributed over the next year. Gemini expressed gratitude towards the New York Department of Financial Services (DFS) for its role in reaching this settlement.
Community Reaction
The crypto community has warmly received this announcement, especially considering the substantial market growth since the Earn program's issues began. Notable figures within the industry have lauded the agreement as a significant win for retail investors, emphasizing the fortunate timing that prevented selling at market lows.
A Milestone in Crypto Asset Recovery
Gemini's deal to return digital assets to Earn users represents a pivotal moment in the industry, offering a glimmer of hope for investors affected by the Genesis bankruptcy. This settlement not only underscores the importance of regulatory involvement in ensuring fair outcomes but also highlights the potential for positive resolutions in the complex landscape of crypto asset recovery.
