In a blog update on Friday, crypto exchange Gemini reiterated its commitment to returning user funds stuck in the defunct Earn product to its customers.
The shared progress contained the exchange’s current efforts to recover the funds and transfer them back to the program’s subscribers.
“Returning your assets is our highest priority, and we are operating with the utmost urgency. We truly appreciate your patience and support while we work to reach the next stage of the process,” the exchange said.
The Gemini Trust Earn product was initiated by the Winklevoss twins’ managed Gemini Co. to reward subscribers with up to 8% APY for lending their crypto assets to the firm. However, Gemini halted the Earn program following Genesis, its crypto lending partner’s exposure to the FTX meltdown.
The Wait Continues
Despite suing Gemini for selling an unregistered product to them, the Earn users have been made to wait for a breakthrough in Genesis’s bankruptcy process. Gemini gave funds generated from the Earn program to DCG’s Genesis, where they are lent out to debtors for returns.
Due to the nature of the program, it was not seen as a secured deposit, dampening the likelihood of reimbursement by Genesis after it filed for bankruptcy protection. However, Gemini has continued its process to recover the $900 million stuck in the defunct Genesis.
Gemini has turned to the Unsecured Creditor Committee (UCC) to facilitate the Earn product fund recovery. The committee represents Gemini in Genesis’s bankruptcy hearing, soliciting for the release of the funds stuck in the crypto lender’s purse.
Mixed Reactions From Investors
The weekly report made by Gemini has received applause from some of the affected users, while others feel the crypto exchange should do better in returning funds.
In reply to the tweet, an affected investor suggested that Gemini fully reimburse them from its reserves, then replace the funds when they recover them from Genesis. The user stated that Gemini would regain the respect and trust of investors by replacing the funds.
