As a long-term crypto investor, I have witnessed my fair share of ups and downs in the market. The recent news from Gemini regarding the distribution of funds to its customers following the financial turmoil caused by Genesis Global Capital’s bankruptcy is certainly a step forward.
Approximately one year and a half after putting on hold the process of returning withdrawals, Gemini Earn program has initiated the repayment of over $2 billion in cryptocurrency to its users, according to a statement released on Wednesday. This payout signifies progress as it enables customers to retrieve their borrowed crypto assets following a financially turbulent time.
Gemini Begins Funds Distribution, Recovery at 232%
The cryptocurrency exchange Gemini, which is overseen by the Winklevoss twins, has begun dispersing recovered funds, amounting to a 232% return.
“Cameron Winklevoss, co-founder and president of Gemini, expressed his delight over the successful restoration of services for their clients.”
Winklevoss acknowledged the difficulties brought about by the delay and showed appreciation for the understanding of their customers. In 2021, Gemini introduced the Earn program and teamed up with Genesis Global Capital, LLC. Through this collaboration, users were able to earn an annual percentage yield of up to 7.4% on their crypto loans.
I regret to inform you that Genesis Global Holdco, the company I work under as an analyst, filed for bankruptcy protection in January 2023. The primary cause of this unfortunate turn of events was the implosion of major players in the cryptocurrency market, such as 3AC and FTX exchange, towards the end of 2022. Consequently, customer withdrawals were frozen, relationships with clients became strained, and Gemini’s overall operational stability was severely tested.
Tyler Winklevoss Defends Crypto Amid Legal Issues
Last year, regulatory issues piled up for the Earn program, reaching the courts. The Securities and Exchange Commission (SEC) accused the program of being an unregistered securities offering and filed a lawsuit against it. In response, Gemini and Genesis attempted to have the charges dismissed. Additionally, the New York Attorney General’s Office brought a separate lawsuit against Gemini, Genesis Global, and Digital Currency Group over their lending program.
Gemini reached a deal with New York State’s Department of Financial Services, resulting in a $37 million penalty and a pledge to return $1.1 billion to Gemini Earn clients. This accord was essential for stabilizing the company’s functions and rebuilding trust within its user base. After the settlement announcement, GMNI stock prices experienced a significant rise of 17.50%.
As a researcher studying the recent developments at Gemini, I can share that Gemini has given its clients the reassuring news that they will receive the remaining portions of their “asset holdings” back within the next twelve months. According to Tyler Winklevoss, the Co-Founder and CEO of Gemini, it’s important to note that this predicament didn’t originate from cryptocurrency itself but rather from traditional financial fraud, worsened by ambiguous regulatory frameworks.
“He emphasized that the Genesis bankruptcy wasn’t caused by cryptocurrencies, intending to boost trust in the digital asset sector.”
Binance Exec Prohibited Hospitalization As Nigerian Officials Flout Court Order
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- BCH PREDICTION. BCH cryptocurrency
- USD RUB PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- ZETA PREDICTION. ZETA cryptocurrency
- I Physically Need WWE 2K25’s Showcase to Feature The Bloodline
- Rumor: One of the Weirdest Games of 2014 Could Be Making a Comeback
2024-05-29 18:29