Frozen for 18 months! Gemini's wealth management product will return $2.18 billion to users, a 232% return on investment. What about Taiwan?

In 2022, Gemini's financial product Gemini Earn suffered asset losses due to the bankruptcy of its partner Genesis, which was affected by FTX, leading to a suspension of withdrawals from Gemini Earn.

Gemini and DCG are being sued by New York law enforcement agencies! Allegedly defrauding users of $1.1 billion by not disclosing financial risks.

After halting withdrawals 18 months ago, the cryptocurrency exchange owned by the billionaire twins, the Winklevoss brothers, fulfilled its promises to users.

Gemini to Return $2.2 Billion to Earn Users

Gemini announced on Wednesday that it will be returning $2.18 billion in digital assets to users of its Earn program. Withdrawals were halted in November 2022 due to complications with its lending partner, Genesis Global Capital.

Gemini Officially Notifies Genesis Parent DCG and Founder Barry Silbert of Fraudulent Conspiracy

Gemini informed users that approximately 97% of the digital assets owed by Genesis as of November 16, 2022, are now available for use in Gemini accounts.

Full Refund with Interest by Gemini

This email is a follow-up to the previous settlement with Genesis and other creditors in the Genesis bankruptcy case. Gemini assures users that they will recover all digital assets proportionally.

NY Attorney General Office Settles with Genesis, Imposes Record $20 Billion Fine on New York

The email states, "If you lent out one Bitcoin in the Earn program, you will receive back one Bitcoin. This also means you will receive any and all value increase since lending out the asset."

Centralized Platform Yields Results: 232% Return

According to CNBC, the $2.18 billion distribution represents a 232% return on user assets since Gemini froze withdrawals for its Earn program clients 18 months ago. It marks a positive turn for users facing locked funds and uncertainty.

What is the Gemini Earn Program? Why the Losses?

Similar to debt or financial products offered by businesses in Taiwan, it allows users to deposit cryptocurrency and earn interest.

The Earn program was launched in 2021, enabling customers to earn high returns by depositing cryptocurrency into Gemini's program. Gemini then lent these cryptocurrencies to institutional borrowers through Genesis Global Capital.

However, in November 2022, Genesis Global Capital halted interest payments and redemptions, leading Gemini to suspend withdrawals from the Earn program. Subsequently, Genesis filed for Chapter 11 bankruptcy protection in Manhattan federal court in January.

Last week, the New York Attorney General announced a $20 billion settlement with Genesis to repay defrauded investors, bringing closure to Gemini Earn.

What About Taiwan? Steaker Not Prosecuted, Compensation Enters Phase Two

Similarly affected by FTX, the Taiwanese digital asset management platform Steaker, currently in its compensation plan has issued 219,100 USDC in Phase Two as of April 2024. Recently, FTX announced overcompensation of 118%, but Steaker has not provided related public information.

User Case Repayment at 19%

According to user cases surveyed, 19% of repayments have been made so far.

FTX still has 9% interest to claim, with creditors owed less than $50,000 set to receive 118% of the claimable amount within 60 days.

Steaker Not Prosecuted, Founder May Seek State Compensation

Such financial products in Taiwan have sparked discussions on "fundraising" concerns, prompting exchanges to cease public operations of debt products. The founder of Steaker was detained at the time of the incident, held for 51 days, and eventually released on bail of NT$3 million in February 2023.

Illegal Fundraising of Hundreds of Millions, Steaker Founder Detained; P. LEAGUE+ Announces Termination of Cooperation

As of now, the case remains unprosecuted. According to Article 1 of the Criminal Compensation Act, "Before a judgment of non-prosecution, withdrawal of prosecution, or final acquittal is made due to lack of evidence of an offense or insufficient suspicion of a crime, detention, forensic detention, or custody shall be compensated," allowing for state compensation claims.

FTX currently indicates full compensation, depending on how much of the user assets held by Steaker were in "unstable coins," in addition to stablecoin assets needing to be returned with interest.