Gemini Trust has agreed to pay $50 million to the New York Attorney General Letitia James for defrauding investors in the Gemini Earn program. This money will be used to reimburse more than 230,000 investors, with 29,000 of them residing in New York, according to a press release from James.
The Attorney General accused Gemini of deceiving investors by misrepresenting the risks associated with investing in Genesis through the Earn program. As a result, investors were locked out of their accounts and unable to access their funds. This settlement serves as a warning to cryptocurrency companies that fraudulent activities will not be tolerated.
The Gemini Earn program faced challenges in 2022 due to the collapse of various crypto lenders, including Genesis. Following a lawsuit filed by James in October 2023, Gemini has agreed to repay $50 million to defrauded investors. This comes shortly after the exchange 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 New York going forward. This decision demonstrates the state’s commitment to holding companies accountable for their actions and protecting investors from fraudulent schemes in the cryptocurrency market.