Gemini and Genesis reach $100 million agreement over Earn program.
Gemini co-founder Cameron Winklevoss and DCG CEO Barry Silbert have been locked in a feud since Gemini wasn’t able to pay Earn users owed interest due to loans given to Genesis. Source: PYMNTS
Gemini Earn users are a step closer to recovering their money. Gemini reached an agreement with Genesis, Digital Currency Group (DCG), and other creditors “on a plan that provides a path for Earn users to recover their assets,” tweeted Gemini co-founder Cameron Winklevoss. The agreement was announced in the Bankruptcy Court on Monday, February 6.
Winklevoss and CEO of DCG Barry Silbert have been in a public feud since Genesis failed to return $900 million of assets owed to Gemini, causing the latter to terminate its Earn program until Earn users are able to be reimbursed.
Gemini is a digital asset exchange and custodian founded in 2014 by the Winklevoss twins. In addition to its exchange services, Gemini also provides a range of products and services for individuals and institutions, including the Earn program, a crypto-based auction platform, and institutional-grade custody solutions.
Gemini’s Earn program was a platform that allowed users to earn interest on their cryptocurrency holdings. The program offered customers the opportunity to deposit their cryptocurrencies into Gemini’s custody, and in exchange, receive interest payments on those holdings. The interest was earned through lending out the assets to institutional borrowers and using the assets for liquidity operations. Earn provided a way for users to earn passive income on their crypto assets without having to sell them.
Genesis Global Capital, LLC, is a now-bankrupt lending and borrowing platform for digital assets, which provided liquidity solutions for institutional investors. Genesis is the subsidiary of Digital Currency Group (DCG) is a venture capital firm that invests in companies in the digital currency and blockchain industry.
The resolution will see Gemini contribute up to $100 million more for Earn users, and DCG selling Genesis Global Trading. DCG will also exchange its existing $1.1 billion note for stock to refinance $1 billion in loans. Earn users may look forward to eventually being able to withdraw their deposited crypto.
