Earn users have received their initial distributions of digital assets, amounting to a total of $2.18 billion. This payout, which accounts for 97% of the digital assets owed to Earn users, marks a significant milestone in the recovery process that began when Genesis halted withdrawals.
The returned assets have been calculated based on their value on May 28, 2024, at 10 AM ET, showing a remarkable 232% recovery since the suspension of withdrawals. This amount surpasses the value held when withdrawals were paused by $1 billion, guaranteeing that users not only receive their originally lent assets but also any appreciation in value.
This distribution became possible as a result of a crucial settlement with Genesis and other creditors during the Genesis bankruptcy proceedings. This agreement plays a pivotal role in ensuring that all Earn users will ultimately receive 100% of their digital assets. In addition, Gemini has contributed $50 million to support the recovery efforts for Earn users.
The current distribution covers approximately 97% of the digital assets in the Earn program, with plans to distribute the remaining balance over the next 12 months. The community has responded with great enthusiasm to this successful initial distribution, highlighting the potential for positive resolutions even in challenging circumstances.
The Genesis bankruptcy was primarily caused by traditional financial fraud, exacerbated by a lack of regulatory clarity, rather than inherent problems within the cryptocurrency industry. Moving forward, industry leaders, including Gemini, are advocating for more explicit regulations that promote innovation and ensure consumer protection in the cryptocurrency space.