Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01291
The announcement ended a 15-month period during which approximately 340,000 Earn users
SurvivesCase description
On 28 February 2024, Gemini announced it had reached a settlement in principle with Genesis and other creditors that would result in all Gemini Earn users receiving 100% of their digital assets back in kind—coin for coin. The announcement ended a 15-month period during which approximately 340,000 Earn users had their assets frozen following Genesis's halt of withdrawals in November 2022. The settlement, which required bankruptcy court approval, represented an unusual outcome: unlike FTX's cash repayment at petition-date values, Earn users would receive the actual cryptocurrency they had deposited, capturing all the appreciation since the 2022 freeze.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2024 |
| Country | United States |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
Related cases involving vendor lockout
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
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Framework references
Where Bitcoin Custody Intersects Legal and Fiduciary Authority
Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.
Professional Scope Boundary Matrix
What each professional or product covers, what they do not, and where gaps form between them.
The Independent Assessment Layer in Bitcoin Custody
How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.