Gemini, the crypto exchange founded by billionaire entrepreneurs Cameron and Tyler Winklevoss, recently announced the successful recovery of virtually all its customers’ digital assets. This marks one of the most successful industry recoveries from insolvency to date. The customers of Gemini Earn program received $2.18 billion of their digital assets in kind, which is a significant achievement in the crypto world.
The announcement of the asset recovery was well-received by the online crypto community. People applauded the exchange’s leadership for acting responsibly after facing the loss of customers’ funds within Genesis Global. Blockstream CEO Adam Back praised Tyler and Cameron Winklevoss for filling a $50 million gap caused by losses at DCG/Genesis to make all Gemini Earn users whole.
Both Genesis and Gemini faced financial troubles in the aftermath of FTX and Alameda Research’s fallout in late 2022. Genesis, after receiving court approval on its bankruptcy plan, had to repay over $3.5 billion to its creditors. One of its creditors was Gemini, which had lent customer assets to Genesis through its Earn program. This led to a complex series of fraud accusations and lawsuits, culminating in a $2 billion settlement deal with the New York Attorney General Letitia James.
Gemini’s recovery sets it apart from other fallen crypto firms in 2022 that have struggled to recover their customers’ stolen assets. Firms like FTX and Celsius only promised to repay customers in cash terms, missing out on the opportunity for investors to benefit from the significant appreciation of their crypto assets. In contrast, Gemini’s repayment exceeds the frozen withdrawals by $1 billion, marking a 232% asset recovery in USD terms, showcasing the exchange’s commitment to its customers.
Gemini maintained that Genesis was solely responsible for its bankruptcy, emphasizing that the Genesis bankruptcy was not a crypto problem. This displays the exchange’s commitment to transparency and accountability in the face of financial challenges. The successful recovery of assets reflects Gemini’s dedication to its customers and the wider crypto community.
Gemini’s remarkable recovery of its customers’ digital assets sets a positive example for the crypto industry. By ensuring that all customers of the Earn program received their assets in kind, Gemini has shown leadership and responsibility in the face of adversity. This successful recovery highlights the importance of transparency, accountability, and customer protection in the world of cryptocurrency.