Genesis and Gemini Strike a Deal Over Earn Product
There is hope that Gemini users under the Earn program could finally recover their funds following an agreement reached today between the crypto exchange and crypto lender Genesis. Cameron Winklevoss, the Gemini co-founder, shared the news on his Twitter account.
Winklevoss wrote that the agreement was revealed in a Bankruptcy court. Part of the deal involves the Genesis parent firm, Digital Currency Group, selling one of its divisions, Genesis Global Trading. The Group is also expected to exchange its current $1 billion note for convertible preferred stock.
Furthermore, Winklevoss says that Gemini will be contributing an extra $100 million to Earn users. According to the co-founder, this step shows the exchange’s commitment to helping those users recover all their money.
Heated Exchange Between Genesis and Gemini Leadership
Before the agreement, Genesis and Gemini executives had a heated exchange on Twitter about the Earn product that lasted for weeks. Through Earn, Gemini would allow its users to deposit crypto and receive yields ranging from 0.4% to 7.9% interest. Genesis was the main partner for this program.
The crypto lender suspended withdrawals last November. That move did not sit well with Earn users and the founders of Gemini. They threatened to sue Genesis and its parent firm if they failed to provide a plan to repay the $950 million loan Gemini gave the now-bankrupt crypto lender.
Genesis Files for Bankruptcy Protection
Genesis filed for bankruptcy protection on January 19. It became among the many crypto firms which have taken a similar move in recent months. In its filing, the crypto lending firm blamed the collapse of FTX and Three Arrow Capital as the major causes that forced it to file for bankruptcy.
In a long thread, Winklevoss termed the agreement a big step toward asset recovery for Genesis creditors. Moreover, in a press release, Genesis’ Interim CEO, Derar Islim, acknowledged his talented employees for their commitment and dedication to client service.
Islim said he is excited about working with his team to build a better future for Genesis. He also appreciated all Genesis clients for their patience as the firm continues to make moves to ensure that its lending business is revived.
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