customers penalized by Genesis bankruptcy can be paid within 2 months

After a year-long dispute, Gemini and Genesis announced that they had reached an agreement in principle to compensate customers of the Patana exchange product. Therefore, investors can recover 100% of the value of their deposits, also taking into account the capital gains made during the blocking months.

Gemini and Genesis reached an agreement to compensate Pata customers

Last year, Genesis declared bankruptcy following the collapse of FTX, punishing Gemini’s customers at the same time who had invested in the Pata Platform product. This sparked a dispute between the Winklevoss twins’ exchange and Digital Currency Group (DCG), the parent company of Genesis.

After months of negotiations, Genesis announced Wednesday evening that it had reached an agreement in principle with Genesis:

Get Updates: Today, we are pleased to announce that we have finally reached a basic agreement with Genesis and the other creditors in the Genesis Bankruptcy that, if approved by the Bankruptcy Court, will give all users access to 100% of their digital assets. back in…

— GeminiTrustCo (@GeminiTrustCo) February 28, 2024

Pursuant to the bankruptcy court approving this agreement, this would allow the platform’s customers to be paid up to the amount of assets deposited :

“This means, for example, that if you have lent bitcoins to the Pata program, you will receive bitcoins as part of this payment. And this means that you will receive all the appreciation of the value of your assets since you lent them in the Pata program. »

In addition, Gemini also indicated that these payments can be made within 2 months, at least for 97% of user assets. As for the remaining 3%, this should be paid over the next 12 months.

In total, the amount involved amounts to 1.8 billion dollars, which is “$700 million more than when Genesis suspended withdrawals on November 16, 2022».

👉 Also in the news – Bitcoin ETF: Kraken is coming to challenge Coinbase with a protection solution intended for institutional investors.

Although such a thing could have put Gemini in great difficulty, to the point of making it join the list of victims of the FTX bond, it seems that the exchange was able to hold on to preserve the capital of its customers.

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Gemini and Genesis reached an agreement to compensate Pata customers

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