Today, Earn users have just received a significant distribution of $2.18 billion in digital assets. This payout, which covers 97% of the digital assets owed to users, marks a major milestone in the recovery process that began when Genesis stopped withdrawals.
The assets that have been returned are valued based on their worth as of May 28, 2024, at 10 AM ET, showing a remarkable 232% recovery since withdrawals were put on hold. This surpasses the original value held when withdrawals were paused by $1 billion, guaranteeing that users not only get back their initial assets but also any increase in value.
This distribution became possible thanks to a key settlement with Genesis and other creditors during the bankruptcy proceedings. This agreement is crucial in ensuring that all Earn users will eventually receive 100% of their digital assets. Furthermore, Gemini has also contributed $50 million to support the recovery efforts for Earn users.
The distribution made today covers around 97% of the digital assets in the Earn program, with the remaining balance set to be distributed over the next year. The successful initial distribution has been met with great enthusiasm from the community, showing promise for positive outcomes in challenging situations.
The root causes of the Genesis bankruptcy were identified as traditional financial fraud, exacerbated by a lack of clear regulations, rather than inherent issues within the cryptocurrency industry. Looking ahead, industry leaders, such as Gemini, are advocating for clearer regulations that promote innovation and ensure consumer protection in the cryptocurrency space.