New York Attorney General Letitia James recently announced that $50 million has been recovered from Gemini Trust. This money was defrauded from Gemini Earn users, and it will now be used to repay more than 230,000 investors, 29,000 of whom are from New York.
Gemini marketed its Earn program as a way for investors to grow their money, but it was discovered that investors were actually being lied to and locked out of their accounts. The settlement reached will help make these defrauded investors whole again. This should serve as a reminder to cryptocurrency companies that deceiving investors is illegal and will not be tolerated.
The issues with the Gemini Earn program arose in 2022 during a turbulent time for crypto lenders, including Genesis. New York Attorney General James filed a lawsuit against Gemini in October 2023, accusing the exchange of misleading investors by presenting investing in Genesis through Gemini Earn as a “low-risk investment.”
In addition to the $50 million recovered, Gemini had already announced the full repayment of over $2 billion to its Earn users. As part of the settlement, Gemini has agreed not to offer its crypto lending programs in the state of New York.
This development highlights the importance of transparency and honesty in the cryptocurrency industry, especially when dealing with investors’ funds. It is crucial for companies to uphold ethical standards and comply with regulations to protect investors and maintain the integrity of the market. The actions taken by the New York Attorney General send a strong message to other cryptocurrency companies that fraudulent practices will face consequences. Investors should also exercise caution and due diligence when participating in investment programs to avoid falling victim to scams or deceitful schemes.