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Minneapolis, MN - Former crypto lender Genesis Global Holdco LLC returned $2.18 billion worth of digital assets Wednesday to 232,000 users of the interest-accruing lending program, Gemini Earn, after a New York bankruptcy judge approved Genesis' Chapter 11 plan last week.

The Earn program allowed users of the crypto platform Gemini to lend their digital assets to Genesis and earn interest. Those digital assets were effectively trapped when the lender filed for Chapter 11 in January 2023 with $5.1 billion in liabilities, citing a tumultuous crypto industry.

Genesis and Gemini reached a settlement earlier this year to return those digital assets to Earn users on a coin-for-coin basis. Wednesday's distribution represents 97% of Earn users' crypto, now valued at $2.18 billion, a roughly 232% increase from its $940 million valuation when Genesis filed for bankruptcy, according to an announcement by Gemini.

"We are thrilled that we have been able to achieve this recovery for our customers. We recognize the hardship caused by this lengthy process and appreciate our customers' continued support and patience throughout," said Cameron Winklevoss, co-founder and president of Gemini, in the announcement.

U.S. Bankruptcy Judge Sean H. Lane on May 17 approved Genesis' Chapter 11 plan, setting up the defunct crypto lending platform to liquidate and kick off distributing $3 billion worth of digital assets.

Gemini Earn launched in 2021 as a partnership between Genesis and Gemini. Under the program, Genesis used digital assets lent to it by Gemini customers in exchange for interest. After crypto giant FTX collapsed in late 2022, Genesis blocked Earn users from withdrawing digital assets lent under the program, which were effectively trapped when Genesis filed for bankruptcy.

Both companies were sued in January 2023 by the U.S. Securities and Exchange Commission over the Earn program, which the agency alleged was an unregistered security. New York's attorney general filed a similar lawsuit in state court in October alleging both companies misled Earn users, who the office argued were in effect investors.

Judge Lane approved an agreement earlier this year between Genesis and the SEC, under which the SEC would receive an unsecured claim against Genesis for $21 million. A separate $2 billion settlement was reached with the New York attorney general's office.

The former crypto business partners were at odds for much of the bankruptcy over how assets owned by Earn users and lent to Genesis under the program should be treated.