The New York Attorney General’s office recently announced that it has reached a settlement with Gemini, a cryptocurrency exchange, over the defunct Gemini Earn program. As part of the settlement, Gemini will be returning $50 million to impacted users. This settlement marks the resolution of legal charges filed by the NYAG against Gemini.
The Gemini Earn program, which was offered in partnership with Genesis Global Capital, allegedly misled thousands of investors about the risks involved. This resulted in over 230,000 users being impacted, including 29,000 New York residents. New York Attorney General Letitia James stated that Gemini marketed the Earn program as a way for investors to grow their money, but instead, investors were locked out of their accounts.
Gemini has confirmed the settlement and has committed to making the final distribution of funds available to users within seven days. This final distribution will cover the remaining 3% of crypto assets owed to users when the Earn program was suspended. In total, Gemini has returned over $2 billion in crypto assets to customer accounts, completing 97% of the fund returns.
Additionally, the settlement with the NYAG not only requires Gemini to compensate impacted users but also bars the exchange from operating crypto lending programs in New York. Moreover, Gemini has agreed to cooperate with the NYAG’s investigations into Genesis parent company Digital Currency Group, DCG CEO Barry Silbert, and former Genesis CEO Soichiro Moro.
This settlement serves as a reminder of the importance of transparency and accountability in the cryptocurrency industry. Users must be cautious when participating in any investment programs and ensure that they fully understand the risks involved. As Gemini works to finalize the distribution of funds to impacted users, it is hoped that this settlement will bring some relief to those affected by the Gemini Earn program’s failure.