Gemini, the crypto platform founded by Cameron and Tyler Winklevoss, has announced a significant breakthrough for its customers affected by the fallout from FTX. Unlike many cases of bankruptcy, Gemini customers stand to recover more than three times the value of their digital assets.
Gemini’s lending program, Earn, which is a collaboration with a third party, had to halt withdrawals during the crypto market turmoil in November 2022. Now, the platform has secured a remarkable 232% recovery for customers involved in this program.
Over 230,000 Gemini customers were unable to access approximately $940 million worth of digital assets during this period. However, with the resurgence of the crypto market over the past year and a half, the value of these frozen funds has surged to $2.18 billion.
Cameron Winklevoss, President of Gemini, expressed his gratitude for customers’ patience and support throughout the lengthy process. In February, Gemini agreed to return a minimum of $1.1 billion to customers and pay a $37 million fine to the New York Department of Financial Services due to unsafe practices.
The recent announcement takes into account the appreciation of crypto value, contributing over $1 billion to the total recovery. For instance, if a customer lent one bitcoin through the Earn program, they should anticipate receiving one bitcoin in return.
At the time of FTX’s collapse, bitcoin plummeted to around $17,500. Now, it’s trading at just under $70,000 per bitcoin. Gemini reassures Earn customers that they will receive their remaining asset balance within the next 12 months.
FTX customers, formerly the second-largest crypto exchange globally, are also expected to receive full reimbursement, along with interest. This is partly due to the increased value of FTX’s crypto holdings and smart investments in artificial intelligence, which the company was able to liquidate.
