Gemini Trust Company, a New York State Chartered Virtual Currency Entity, Returns $2.18B in Digital Assets to Earn Customers

The New York Department of Financial Services (NYDFS) has shared a consumer alert update for Gemini Earn customers.

Gemini Trust Company, a New York State chartered virtual currency entity, has reportedly returned more than $2 billion in digital assets to Earn customers.

The NYDFS has noted the following Consumer Alert notice regarding Gemini Earn customers:

As part of a major settlement concluded recently, Gemini Trust Company, a New York State chartered virtual currency entity, has now returned $2.18 billion in digital assets to Earn users.

This initial distribution is said to “represent approximately 97% of the digital assets owed to Earn users.”

And now the remaining asset balance is “expected to be distributed within the next 12 months.”

Earlier this year, DFS secured a commitment from Gemini Trust Company, LLC to “return at least $1.1 billion to Earn users through the Genesis Global Capital, LLC bankruptcy proceeding.”

As of now, users will be able to “access assets in their accounts.”

Gemini has provided the following instructions on their website to gain access:

  • Log into your Gemini account
  • Navigate to your account settings
  • Visit the “Earn Distributions” section
  • Read through the materials
  • Click or press the “Access” button to initiate the distribution process

After you take these steps, Gemini says that it “will update your available balance to reflect your initial Earn distribution in your Gemini account.”

You need to “allow up to several hours for your initial distribution to appear in your account.”

If you take no action, Gemini will automatically “update your available balance to reflect your initial distribution in accounts by May 31, 2024.”

For additional information about the distribution of assets, including other details, you may check Gemini’s official website.

Cameron and Tyler Winklevoss from Gemini also noted in a new blog post that Earn users “received $2.18 billion of their digital assets in kind.”

These initial distributions are said to represent:

  • 97% of digital assets owed to Earn users
  • $1 billion more than when Genesis halted withdrawals
  • A 232% recovery from when Genesis halted withdrawals

The notional dollar value of digital assets returned to Earn customers is “based on digital asset prices as of May 28, 2024 at 10 am ET.”

According to Gemini, this represents “an unprecedented recovery among crypto bankruptcies, as well as bankruptcies in general, and follows their previous announcement that they reached a settlement in principle 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.”

This means, for example, that if you “had lent one bitcoin in the Earn program, you will receive one bitcoin back.”

And it means that you will “receive any and all appreciation of your assets since you lent them into the Earn program.”

In order to ensure this successful resolution, Gemini has also contributed $50 million “to the Earn users’ recovery.”

Today’s initial distributions “represent approximately 97% of the digital assets in the Earn program.”

You can expect to “receive your remaining asset balance within the next 12 months.”

The Gemini team concluded:

“We are thrilled that we have been able to achieve this recovery for you. We recognize the hardship caused by this lengthy process and appreciate your continued support and patience throughout this process. Finally, it’s important to note that the Genesis bankruptcy was not a crypto problem. It was old-fashioned financial fraud compounded by a lack of regulatory clarity. To that end, we will continue to fight for clear rules and guidance for our industry that foster both innovation and consumer protection. And we will win this fight. The future is bright.”

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