As an analyst with a background in finance and experience in the cryptocurrency industry, I find the recent development at Gemini regarding the return of more than $2 billion in cryptocurrency to its Earn program users intriguing. The news comes after Genesis Global Capital, the entity to which customers had lent their crypto through Gemini’s Earn program, filed for bankruptcy protection.
As a Gemini Earn member and crypto investor, I’m excited to hear that over a year since the lending program came to an end, we’ll be receiving more than $2 billion worth of our original cryptocurrency holdings back into our accounts. This means that my initial investment in Gemini Earn will be returned to me in full, allowing me to continue growing my crypto portfolio with this significant amount.
The Winklevoss-led exchange, Gemini, announced on Wednesday that it will return the borrowed bitcoins in kind to users of its lending program, Gemini Earn. This implies that for every bitcoin lent, a bitcoin will be returned. Additionally, Gemini noted that this redistribution represents a 232% rebound from the restriction on withdrawals implemented in November 2022.
“Cameron Winklevoss, co-founder and president of Gemini, shared that we have developed a program enabling our clients to earn a substantial return on their cryptocurrency investments without the need to sell this decade’s most lucrative asset class.”
As a financial analyst, I would rephrase it as: “Individuals have the opportunity to lend their cryptocurrency holdings to Genesis Global Capital, LLC, which is currently undergoing bankruptcy proceedings. In return, they can potentially earn an annual percentage yield of up to 7.4% through Gemini’s Earn platform, a service that was launched in 2021.”
In the aftermath of the financial collapses of crypto exchange FTX in 2022 and crypto hedge fund Three Arrows Capital during the same year, Genesis Global Holdco sought refuge under bankruptcy law in January 2023.
Customers of Gemini Earn can expect to receive the remaining amount of their “asset balances” within the next twelve months, according to a recent announcement by the company.
In January 2023, Gemini and Genesis found themselves embroiled in legal issues with the US Securities and Exchange Commission (SEC). The SEC brought charges against them, alleging they had sold unregistered securities through their Earn program. Both companies have since filed motions to dismiss the lawsuits.
The New York Attorney General’s Office has announced legal actions against Gemini, Genesis Global Holdco, and Digital Currency Group, the latter being the parent company of these entities, in relation to their cryptocurrency lending practices.
In February, Gemini reached a settlement with the New York State Department of Financial Services over allegations that they failed to properly screen or supervise Genesis Global Capital, an unregistered firm. As part of the agreement, Gemini will pay a fine of $37 million and return approximately $1.1 billion to customers of their Gemini Earn program.
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2024-05-29 21:09