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.
In an adversary action filed in October, Gemini said the crypto lender’s earlier Chapter 11 plan would have shortchanged $1.6 billion worth of Earn users’ collateral. Genesis in November filed an adversary action against its former partner to recoup $689 million it alleged Gemini fraudulently pulled from the platform in the months leading up to the bankruptcy.
Last month, Judge Lane approved a settlement between the companies for Genesis to return 97% of Earn user crypto on a coin-for-coin basis in the short term and return the remaining 3% of assets once it had pursued claims against its parent company, crypto venture capitalist firm Digital Currency Group Inc. Gemini said in Wednesday’s announcement Earn users can expect their remaining crypto to be returned in the next 12 months.
Gemini will also pay $50 million toward the Earn user recovery, according to its announcement.
