Insolvent cryptocurrency lender delivers 242% repayment rate.
Lots of people had their doubts about a questionable business approach and chose to deposit their cryptocurrencies with it. But then a crash occurred, causing the platform to freeze and turn off. The concerned parties are now being given back their Bitcoins and other cryptocurrencies - and their worth has doubled since then.
Mind-blowing gains from shuttered crypto lender: 232,000 clients of the defunct crypto lender Genesis and the crypto exchange Gemini are getting their Bitcoins & Co. back at a total value exceeding two billion dollars. This means these individuals are earning a cool 242% return on their frozen assets since early 2023, according to Gemini's announcement.
Initially, these customers had lent their cryptocurrencies to Genesis via the Gemini Earn Program, gaining interest payments in exchange. Gemini and Genesis had been managing this jointly-run venture. The value of these digital currencies stood at $940 million in November 2022.
The program halted following a steep plunge in Bitcoin's market value from approximately $67,000 in November 2021 to $17,000 a year later. Despite the freeze, their Bitcoins remained intact. Now, they're supposed to be returned, but not as cash payouts at the year's end in 2022. Instead, they'll receive their original crypto back. With the Bitcoin price skyrocketing to roughly $67,000, customers are anticipating this massive profit.
State Attorney General: Gemini program was "scam"
New York State's Attorney General, Letitia James, sued Genesis, Gemini, and their parent company Digital Currency Group (DCG) over the Gemini Earn Program, claiming it was a "scam" and had deceived customers. In February, she outlined a settlement where Genesis agreed to settle with its customers before any other creditors - even before the state of New York and DCG.
The DCG wanted the customers to be paid back according to the cryptocurrencies' value in January 2023. This would have resulted in most of the potential sales revenues going to the DCG. However, a judge overruled this. The lawsuit put an end to Genesis' business recovery attempts, forcing it into a bankruptcy liquidation.
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