On May 29, 2024, the Gemini crypto exchange, established by Tyler and Cameron Winklevoss (CEO and President, respectively), announced a significant update for users of its Earn program. A company blog post revealed that Earn users had received $2.18 billion in digital assets. This recovery, accounting for 97% of the assets owed to users, represents a major milestone following the Genesis bankruptcy.

Key Recovery Details

Gemini's announcement highlighted several important points:

- 97% Recovery: Earn program users received 97% of their digital assets.

- $1 Billion Increase: The total recovered assets exceeded the initial amount by $1 billion when Genesis halted withdrawals.

- 232% Recovery Rate: The recovery rate was 232%, compared to the asset value when Genesis stopped withdrawals.

The valuation of these assets is based on their prices as of May 28, 2024, at 10 am ET.

Unprecedented Recovery

Tyler and Cameron Winklevoss described the recovery as unprecedented, both in the cryptocurrency sector and in financial bankruptcies at large. This follows a previous announcement about a settlement with Genesis and other creditors, ensuring all Earn users will eventually receive 100% of their digital assets back in kind. For example, a user who lent one bitcoin to the Earn program will get one bitcoin back, including any appreciation in value since it was lent. Additionally, Gemini has contributed $50 million to aid in this recovery effort.

Future Steps and Outlook

The initial distributions cover approximately 97% of the assets in the Earn program, with the remaining balances expected to be distributed within the next 12 months.

The Winklevoss twins acknowledged the difficulties and delays in the recovery process and thanked users for their patience. They also noted that the Genesis bankruptcy resulted from traditional financial fraud and a lack of regulatory clarity, not from issues inherent to the cryptocurrency industry.

Broader Implications

The announcement emphasized Gemini’s dedication to advocating for clear regulations and consumer protection in the cryptocurrency space. The Winklevoss twins affirmed their commitment to continue fighting for regulatory clarity to foster innovation while ensuring consumer protection.