Bankrupt crypto lender Genesis and crypto exchange Gemini have successfully returned over $2 billion in cryptocurrency to 232,000 retail customers of their jointly managed Gemini Earn program. This repayment provides customers a 242% return on assets that had been locked up since January 2023, Gemini announced on Wednesday.

Unlike other crypto companies that went bankrupt following the 2022 market crash, Genesis managed to return customers’ crypto assets instead of liquidating them for cash payouts.

Customers who loaned one bitcoin to Genesis will receive one bitcoin back, benefiting from the coin’s substantial price increase since Genesis declared bankruptcy. Bitcoin’s value has more than tripled since January 2023, rising to over $67,000.

“We are thrilled to have been able to achieve this recovery for our customers,” said Gemini co-founder Cameron Winklevoss. “We recognize the hardship caused by this lengthy process and appreciate our customers’ continued support and patience throughout.”

Gemini customers will receive approximately 97% of their repayment immediately, with the remaining amount distributed within 12 months, the company stated.

Previously, Genesis had estimated that its customers, including larger investors not part of the Earn program, would receive a 77% recovery in the bankruptcy. Gemini customers benefited from a $50 million settlement contribution from Gemini and settlements that enabled Genesis to sell shares in Grayscale bitcoin and ethereum trusts.

Participants in the Gemini Earn program loaned their crypto to Genesis and earned interest on their loaned assets. The total value of the Gemini Earn assets was $940 million when Genesis froze customer accounts in November 2022.

New York Attorney General Letitia James has alleged that the Gemini Earn program was a “scam” that misled investors. She has sued Genesis, Gemini, and Genesis’s parent company Digital Currency Group (DCG) over the program.

In February, James reached a settlement with Genesis requiring it to repay Earn customers before other creditors, including New York state and DCG.

DCG had argued that Genesis’s customers should be repaid based on the value of the crypto assets in January 2023. Under this argument, which a judge overruled on May 17, DCG could have taken the “excess” value from the rise in crypto prices rather than returning it to Genesis customers.

James’ lawsuit disrupted Genesis’s efforts to restart its business, ultimately pushing the company toward bankruptcy liquidation.

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Crypto bridging protocol LayerZero is expanding to the Solana blockchain, providing a new pathway for transferring crypto assets between Ethereum and its largest competitor, starting Wednesday.

This integration will allow Solana users to move their assets to Arbitrum, Ethereum, Polygon, and 70 other connected chains, and vice-versa, according to LayerZero Labs, the company behind the bridging protocol.

LayerZero functions as a bridging platform, enabling communication between blockchains that do not naturally interact. In the first quarter of 2024, LayerZero users transferred $6.7 billion worth of cryptocurrencies, generating $11.5 million in revenue, as reported by Messari.

In April, private venture investors valued LayerZero Labs at $3 billion during a significant funding round. The protocol is expected to issue its own token soon.

Solana, whose native token $SOL is the fifth-largest cryptocurrency by market cap according to CoinGecko, already has three major bridging protocols linking it to the larger Ethereum ecosystem, with Wormhole being the most notable.

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The State of Wisconsin Investment Board has become the first public institution in the U.S. to invest in cryptocurrency, putting $187.1 million into bitcoin and related crypto companies, as revealed in a May 14 quarterly filing with the U.S. Securities and Exchange Commission.

SWIB manages the assets of the Wisconsin Retirement System, the State Investment Fund, and other funds, with total assets exceeding $156 billion as of the end of 2023. The cryptocurrency investment represents a small portion—about one-tenth of 1%—of its total assets.

Bob Bukowski, managing partner of Alpha Investing Consulting, described the investment as a speculative bet. He explained, “If bitcoin doubles or triples in value, they can say they were invested. If it goes to zero, the loss is negligible.”

The largest portion of SWIB’s crypto investment is $99.1 million in iShares Bitcoin Trust (NYSEARCA:IBIT), an exchange-traded fund managed by BlackRock (NYSE:BLK), which launched in January after SEC approval. The fund closed at $38.98 on Tuesday, up about 46% from its January launch.

In addition to iShares Bitcoin Trust, SWIB invested $63.6 million in Grayscale Bitcoin Trust and $24.5 million in Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange platform.

Bloomberg Senior ETF Analyst Eric Balchunas noted on Twitter that other public institutions might follow SWIB’s lead, saying, “Expect more, as institutions tend to move in herds.”

When contacted for comment, SWIB stated it “does not comment on specific investments.”

SEC Chair Gary Gensler emphasized caution, noting that bitcoin is a speculative asset often associated with illicit activities. He said, “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

Bukowski added that the SEC’s involvement is crucial for investor protection, stating, “The SEC now has the authority to monitor how these investments are managed and traded.”

Bitcoin traded between $66,685 and $70,314 per coin over the last five days, closing at $68,305 on Wednesday.

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Russian commodities firms facing challenges in executing financial transactions with Chinese counterparts are turning to stablecoins as a new method for settling deals. At least two major metals producers have begun utilizing Tether Holdings Ltd.’s stablecoin and other cryptocurrencies to settle cross-border transactions with primarily Chinese clients and suppliers. These settlements, in some cases, are routed through Hong Kong.

The shift towards blockchain-based transactions highlights the enduring impact of international restrictions imposed in response to the 2022 invasion of Ukraine on the Russian economy. Even unsanctioned Russian companies dealing in commodities such as metals and timber have encountered difficulties in receiving payments for their goods and procuring equipment and raw materials. Challenges persist despite China’s stance of not joining international sanctions, as the US Treasury Department’s threats of secondary sanctions on lenders facilitating sanctions evasion have led to increased compliance measures.

Stablecoins offer a faster and more cost-effective alternative for transactions, with transfers taking just seconds and costing only a few cents. Tether’s USDT stablecoin, pegged to the US dollar, provides added convenience for exporters. The alternative of traditional banking transactions carries the risk of account freezing, with some companies experiencing the frustration of multiple frozen accounts in various countries.

The growing role of cryptocurrencies in settlements is not unique to Russia, as countries under sanctions like Venezuela have increasingly turned to Tether for transactions, often brokered through intermediaries in Dubai. This trend reflects a broader shift in the Russian central bank’s stance towards the cryptocurrency industry. While previously considering a blanket ban, Governor Elvira Nabiullina now supports experimenting with cryptocurrency payments in international transactions.

However, the central bank has emphasized that cryptocurrency payments are acceptable only for cross-border transfers and should not be promoted domestically. Legislation is being considered to establish a legal framework for stablecoin use in international transactions.

Meanwhile, cryptocurrency-linked banking services in Russia are expanding, with Rosbank becoming the first Russian lender to initiate cross-border payments with cryptocurrency for businesses in June last year. Other banks have followed suit since then.

In contrast to stablecoin adoption, some commodities firms are opting for barter deals to settle transactions, entirely avoiding cross-border transfers. This approach, once considered exotic, involves swapping commodities for goods shipped to Russia.

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Semler Scientific (NASDAQ:SMLR) witnessed a remarkable 25% increase in its stock price during early U.S. trading hours on Tuesday following its announcement of purchasing 581 bitcoins for its treasury.

Before the surge, the company boasted a market capitalization of under $200 million. In its most recent earnings statement, Semler revealed holding cash and cash equivalents amounting to $62.9 million at the end of the first quarter. The company reported first-quarter revenue of $15.9 million, with operating cash flow standing at $6.1 million.

According to a press release issued this morning, Semler acquired 581 bitcoins for $40 million, implying an average price of approximately $68,850 per token.

Eric Semler, the company’s Chairman, highlighted Bitcoin’s emergence as a significant asset class, boasting a market value exceeding $1 trillion. He emphasized Bitcoin’s unique attributes as a scarce and finite asset, capable of serving as a viable hedge against inflation and a haven amidst global uncertainty. Additionally, Semler expressed a preference for Bitcoin over gold, citing Bitcoin’s digital resilience compared to the traditional precious metal.

Despite today’s impressive gain, Semler’s stock remains just 2% lower on a year-over-year basis.

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