In a recent development, Gemini Trust Co. has obtained approval from Judge Sean Lane of the Southern District of New York to proceed with the monetization of Initial Collateral held for the benefit of Earn users.
The approval signifies a significant step forward in resolving the aftermath of the halt of Gemini’s Earn program during a crypto market crash in November 2023.
Court greenlights Gemini’s asset return plan for earning users
Gemini’s recent post on X (formerly Twitter) highlighted the court’s decision to permit the crypto exchange to initiate the monetization process, enabling the return of specific digital assets loaned to Earn users.
This move emphasizes Gemini’s commitment to facilitating in-kind distributions, ensuring that Earn users receive the exact digital assets they had initially loaned, rather than an equivalent value in dollars or alternative cryptocurrencies.
Gemini’s ongoing litigation and settlement efforts
The halt of the Earn program following the crypto market crash has led to litigation between Genesis, Gemini, and Genesis’s parent company, Digital Currency Group. To keep Earn users informed about the progress, Gemini initiated a weekly update program. In the most recent update released Gemini informed users of Judge Lane’s approval and other relevant developments.
Amended plan and continued review
Genesis has filed an Amended Plan and Memorandum in Support of Confirmation, reflecting necessary changes aimed at resolving potential objections to confirmation, including those raised by Gemini. The amended plan also includes clarifications regarding the interests of creditors, particularly Earn users.
Gemini has assured its users that it will thoroughly review the Amended Plan to ensure the protection of Earn users’ rights. Furthermore, the crypto exchange has pledged to ensure that none of the changes proposed in the Amended Plan would compel Gemini to oppose its confirmation.
Gemini’s forward focus amid legal progress
As the monetization process begins and litigation progresses, Gemini remains focused on safeguarding the interests of its users. The approval granted by Judge Lane marks a crucial milestone in the resolution of the Earn program’s aftermath.
With ongoing efforts to address objections and provide clarity through the Amended Plan, Gemini aims to navigate through the legal proceedings while upholding its commitment to transparency and user protection.
