In a significant update for Gemini Earn users, the Winklevoss-owned cryptocurrency exchange Gemini has announced that users will be reimbursed over $2.18 billion worth of their crypto assets. This repayment comes more than a year after the lending program was discontinued.

According to Gemini's statement on Wednesday, the repayment will be made in-kind. This means that customers who lent one Bitcoin will receive one Bitcoin back. The exchange highlighted that these distributions mark a 232% recovery from the time withdrawals were halted in November 2022.

"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," said Cameron Winklevoss, co-founder and president of Gemini.

Gemini introduced the Earn program in 2021, which allowed customers to lend their crypto to Genesis Global Capital, LLC, in exchange for up to 7.4% annual percentage yield (APY). However, Genesis Global Holdco filed for bankruptcy protection in January 2023, following financial setbacks from the collapses of crypto hedge fund Three Arrows Capital and crypto exchange FTX in 2022.

On Wednesday, Gemini announced that Earn customers could expect to receive the remainder of their "asset balance" within the next year. This marks a significant step in addressing the financial disruption caused by the program's cessation.

Both Gemini and Genesis have faced legal challenges over the past year. In January 2023, the U.S. Securities and Exchange Commission (SEC) sued both companies, alleging that the Earn program was an unregistered offer and sale of securities under U.S. law. Both firms have sought to dismiss this lawsuit.

Additionally, the New York Attorney General's Office has filed a lawsuit against Gemini, Genesis Global Holdco, and its parent company, Digital Currency Group, regarding the crypto lending program.

As part of a settlement with the New York State Department of Financial Services, Gemini agreed in February to pay a $37 million fine and return $1.1 billion to Gemini Earn customers. The settlement came after the regulator criticized Gemini for failing to adequately vet or monitor Genesis Global Capital, which was not registered with the state regulator.

This series of developments marks a pivotal moment for Gemini Earn users, who are finally seeing the return of their assets after a prolonged period of uncertainty.