Freeze for 18 months! Gemini financial products will refund users 2.18 billion US dollars, including principal and interest, 232%. What about Taiwan?
2022 Gemini’s financial product Gemini Earn suffered asset losses due to the bankruptcy of its partner Genesis, which was affected by FTX, resulting in suspension of withdrawals for Gemini Earn.
Gemini and DCG face a lawsuit from New York law enforcement agencies! They are accused of not disclosing financial risks and defrauding users of $1.1 billion.
After suspending withdrawals 18 months ago, this cryptocurrency exchange owned by billionaire twins Winklevoss fulfilled its commitment to users.
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Returning $2.2 billion to Earn users
Gemini’s comprehensive return with interest
Traceable results on centralized platforms: 232% return
What is the Gemini Earn program? Why the losses?
What about Taiwan? Steaker not sued, compensation to second phase
Repayment of 19% of user cases
Steaker not sued, founder may apply for state compensation
Gemini announced on Wednesday that it will return $2.18 billion in digital assets to users of the Earn program. Due to the complex situation with its lending partner Genesis Global Capital, withdrawals were suspended in November 2022.
Gemini informed users that as of the suspension date (November 16, 2022), approximately 97% of the digital assets owed by Genesis can now be used in Gemini accounts.
This email is a follow-up to previous settlements with Genesis and other creditors in the Genesis bankruptcy case. Gemini guarantees users that they will recover all digital assets proportionally.
The email states, “If you lent out one Bitcoin in the Earn program, you will receive one Bitcoin back. This also means that you will receive any and all value increases since lending out the asset.”
According to CNBC, the $2.18 billion distribution represents a 232% return on user assets since Gemini froze its Earn program customer withdrawals 18 months ago. It is a positive turn for users facing locked funds and uncertainty.
Similar to creditors or financial products in Taiwan, it allows users to deposit cryptocurrencies to earn interest income.
The Earn program was first launched in 2021, allowing customers to earn high returns by depositing cryptocurrencies into Gemini’s program. Gemini then lent these cryptocurrencies to institutional borrowers through Genesis Global Capital.
However, in November 2022, Genesis Global Capital suspended earnings and redemptions, leading to Gemini’s suspension of Earn program withdrawals. Genesis subsequently filed for Chapter 11 bankruptcy protection in January.
Last week, the New York Attorney General announced a $2 billion settlement with Genesis to repay defrauded investors, which led to the closure of Gemini Earn.
Steaker, a Taiwanese digital asset wealth management platform that is also unable to withdraw funds due to FTX’s impact, is currently in its second phase of compensation (2024/4) and has issued 219,100 USDC. Recently, FTX announced that it offers compensation of 118% above the claimable amount, but Steaker has not provided any related public information.
According to a user case investigated by ChainNews, 19% of repayments have been made so far.
This type of wealth management product in Taiwan has raised concerns about “fundraising,” and exchanges have also suspended the public operation of debt products. The founder of Steaker was detained and prohibited from meeting at the time of the incident, and was subsequently detained for 51 days. Eventually, he was released on bail of NT$3 million in February 2023.
This case has not been prosecuted so far. According to Article 1 of the Criminal Compensation Act, “Before a decision not to prosecute, withdrawal of prosecution, rejection of prosecution, or a not guilty judgment becomes final due to the lack of behavior punishable or sufficient suspicion of crime, if detention, expert detention, or detention has been imposed, compensation can be applied for.”
FTX currently states that it can fully compensate, depending on the proportion of non-stablecoin assets in the user’s assets at that time. In addition to the impact of low liquidation prices, stablecoin assets should also be returned with interest.
FTX
Gemini
Genesis
Steaker
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