Gemini Earn users are set to receive a whopping $2.18 billion in-kind payout, more than a year after the lending program came to a halt. According to a statement released by Gemini, a crypto exchange owned by the Winklevoss twins, the funds will be distributed in kind, meaning that customers who lent one bitcoin will receive one bitcoin back. This move represents a 232% recovery from when withdrawals were halted in November 2022, a testament to Gemini's commitment to its customers.

The Earn program was launched in 2021, allowing customers to loan their crypto to Genesis Global Capital, LLC, a now-bankrupt company, and earn up to 7.4% APY. However, Genesis Global Holdco filed for bankruptcy protection in January 2023, following a financial hit after the collapses of crypto hedge fund Three Arrows Capital and crypto exchange FTX in 2022. This led to a prolonged period of uncertainty for Gemini Earn customers, who were left wondering if they would ever recover their assets.

Cameron Winklevoss, co-founder and president of Gemini, expressed his relief and appreciation for the customers' continued support and patience throughout the process. "We are thrilled that we have been able to achieve this recovery for our customers. We recognize the hardship caused by this lengthy process and appreciate our customers' continued support and patience throughout," he said in a statement.

The payout is a significant development in the ongoing legal battle between Gemini and Genesis. The two companies have been embroiled in lawsuits over the past year, with the U.S. Securities and Exchange Commission suing them in January 2023 for allegedly operating an unregistered securities offering. Gemini and Genesis have both moved to dismiss the lawsuit. Separately, the New York Attorney General's Office has also sued Gemini, Genesis Global Holdco, and its parent company, Digital Currency Group, over the crypto lending program.

In a settlement agreement with the New York State Department of Financial Services, Gemini agreed to pay a $37 million fine and return $1.1 billion to Gemini Earn customers in February. The New York regulator said Gemini failed to vet or monitor Genesis Global Capital, which was not registered with the regulator. Despite these legal challenges, Gemini has remained committed to its customers, and this payout is a testament to that commitment.

Gemini Earn customers can expect to receive the rest of their "asset balance" within the next year, according to the company. This payout marks a significant milestone in the crypto industry, demonstrating that even in the face of uncertainty and legal challenges, customers can recover their assets. The move is also a testament to Gemini's commitment to its customers and its willingness to work through complex legal issues to achieve a positive outcome.

In conclusion, the $2.18 billion payout to Gemini Earn users is a significant development in the crypto industry, marking a positive outcome for customers who have been waiting for over a year to recover their assets. The move demonstrates Gemini's commitment to its customers and its willingness to work through complex legal issues to achieve a positive outcome. As the crypto industry continues to evolve, this payout serves as a reminder of the importance of customer protection and the need for clear regulations to ensure that customers are protected in the event of company failures.