Gemini has announced that customers who were affected by the fallout of FTX in November 2022 will be able to recover more than three times the value of their digital assets. More than 230,000 customers lost access to around $940 million worth of digital assets, but with the rise in crypto value over the past year and a half, the frozen funds are now worth $2.18 billion. Gemini has secured a 232% recovery for customers who participated in its lending program, Earn, and customers can expect to receive their remaining asset balance within the next 12 months.
Gemini’s founders, Cameron and Tyler Winklevoss, expressed their satisfaction with the recovery for their customers, acknowledging the challenges they faced during the process. In February, Gemini agreed to return at least $1.1 billion to customers of the lending program and pay a $37 million fine to settle with the New York Department of Financial Services. This recent announcement of the recovery value accounts for the appreciation of value in crypto, adding over $1 billion to the total. Earn customers who had lent assets can now expect to receive the same amount back.
At the time of the FTX fallout, bitcoin had dropped to around $17,500, causing turmoil in crypto markets. Now, a year and a half later, bitcoin is trading at just under $70,000. Customers of FTX, which was once the second-largest crypto exchange globally, are also expected to be made whole, with interest, due to the rising value of FTX’s crypto holdings and successful liquidations of smart bets on artificial intelligence.
The recovery process for Gemini customers involved in the FTX fallout is a rare success story in a bankruptcy situation. Customers typically do not see such high recoveries in these cases, making this outcome significant for those involved. Gemini’s partnership with a third party for its Earn lending program allowed for this higher recovery value, demonstrating the benefits of such partnerships during challenging times in the crypto market.
Gemini’s commitment to returning as much value as possible to its customers shows their dedication to maintaining customer trust and support, even in difficult circumstances. The recovery efforts for both Gemini and FTX customers highlight the resilience and potential for positive outcomes in the crypto industry, despite challenges and setbacks. As the value of digital assets continues to fluctuate and grow, it is essential for platforms like Gemini to prioritize customer satisfaction and security in their operations.
