Cryptocurrency exchange Gemini, owned by the Winklevoss twins, has announced it will return $2.2 billion to users of its EARN program after halting withdrawals 18 months ago, CNBC reported. The move follows a major settlement between the New York Attorney General and Gemini's lending partner, Genesis.

Cryptocurrency Lending Users Recover Money

With the $2 billion settlement, the defrauded investors are expected to recover their losses in full, representing a major victory for the affected investors. The decision was reached between Gemini and Genesis under the supervision of the New York Attorney General.

Gemini’s Earn program was launched in 2021 to offer users the opportunity to earn attractive returns on their cryptocurrency holdings. By participating in the program, users entrusted their assets to Gemini, which then facilitated lending to institutional borrowers through Genesis Global Capital.

However, the program faced challenges in November 2022 when Genesis halted new loan originations and redemptions, prompting Gemini to suspend withdrawals. Gemini is committed to returning 100% of digital assets to Earn users. The company's approach, coupled with regulatory intervention, has paved the way for a significant recovery for affected investors.

Gemini reportedly sent an email to users that initial Earn distributions, amounting to about 97% owed to users by Genesis, are available in Gemini accounts. The new settlement follows a settlement with Genesis and other creditors, which will result in Earn users receiving full payment, the cryptocurrency exchange said.

At $2.18 billion, the distribution is said to represent a 232% rebound for users since Gemini suspended withdrawals for users in its Earn program.