Genesis and Gemini’s Earn program closure leads to $2 billion settlement offer for affected users

Genesis and Gemini have announced a closure of their Earn program, which has resulted in a $2 billion settlement offer for affected users. Gemini has stated that Genesis requested approval from a bankruptcy court for the settlement, which will distribute funds to the users. If the settlement is approved, Earn users whose accounts were suspended will receive 100% of their assets, with 97% expected to be reimbursed within weeks of court approval. The remaining funds will be distributed as they are obtained from Genesis’ parent company, Digital Currency Group. The current value of the settlement is $2 billion, $900 million higher than when the service was halted in 2022. Gemini will contribute $50 million to the funds returned to users. The settlement also resolves adversary proceedings between Genesis and Gemini. The Earn program was originally launched by Gemini and Genesis in February 2021 but was discontinued in January 2023 due to the collapse of FTX and a broader lending crisis. Genesis filed for partial bankruptcy that same month, and the US Securities and Exchange Commission filed charges against Gemini and Genesis. Genesis has agreed to pay a $21 million civil penalty as part of a settlement with the SEC.