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Tyler Winklevoss (left) and Cameron Winklevoss founded the cryptocurrency exchange Gemini in 2014.
new york
CNN
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Cryptocurrency platform Gemini clients can expect to recover more than three times the value of their digital assets lost in the FTX collapse, a rare outcome for creditors caught up in a bankruptcy.
Gemini, the exchange founded by Cameron Winklevoss and Tyler Winklevoss, said on Wednesday it had secured a 232% recovery for customers who participated in “Earn,” a lending program in partnership with a third party that halted withdrawals when crypto markets fell into turmoil in November 2022.
Over 230,000 Gemini customers lost access to approximately $940 million worth of digital assets. Cryptocurrencies are backThis brings the value of the frozen funds to $2.18 billion.
“We are very pleased to have been able to achieve this recovery for our customers. We recognize the difficulties this lengthy process has created and we thank our customers for their support and patience throughout,” Gemini president Cameron Winklevoss said in a statement.
Gemini agreed in February to return at least $1.1 billion to customers in its loan program and pay a $37 million penalty for unsafe and unsound practices. Part of the village and the New York State Department of Financial Services.
Wednesday’s announcement reflects a rise in the value of the cryptocurrency, with its total value increasing by more than $1 billion.
For example, if a customer had loaned out 1 Bitcoin under the Earn program, they would receive 1 Bitcoin back.
When FTX collapsedThis caused chaos in the cryptocurrency market, with Bitcoin plummeting to around $17,500. A year and a half later, one Bitcoin is worth just under $70,000.
Gemini said Earn customers will be able to receive their remaining asset balances within the next 12 months.
Customers of FTX, once the world’s second-largest crypto exchange, are also expected to be fully compensated with interest, thanks in part to FTX’s rising crypto holdings and a smart bet on artificial intelligence that led to successful liquidation.
