Gemini Resolves Case with New York Attorney General Commits to 50 Million Settlement

Gemini Resolves Dispute with New York Attorney General, Agrees to $50 Million Settlement
Gemini, a cryptocurrency exchange, has come to an agreement with the New York Attorney General (NYAG) to pay $50 million in digital assets to investors of its Gemini Earn program.
The settlement comes after accusations from NYAG Letitia James that Gemini deceived numerous investors, including those in New York, about the risks involved in the program.
Gemini Earn allowed users to lend their cryptocurrencies to Genesis Global Capital, LLC, with the promise of earning up to 7.4 percent annual percentage yield (APY).
However, according to NYAG, Gemini falsely advertised the program and restricted investors’ access to their accounts.
“Gemini promoted its Earn program as a means for investors to increase their funds, but in reality, they lied and prevented investors from accessing their accounts,” stated Letitia James.
All investors who were unable to withdraw their funds when the program collapsed will receive a full refund of their initial investments as part of the settlement.
Furthermore, Gemini is prohibited from offering any crypto lending programs in New York.
Initially, NYAG filed a complaint against Gemini, Genesis, and Digital Currency Group (DCG) in October, alleging that Gemini misled investors and provided false assurances about the low risks associated with investing in the Earn program through Genesis.
NYAG also accused DCG, Genesis, and two executives of concealing $1.1 billion in losses through misleading statements and omissions.
Gemini recently announced that Earn users would receive $2.18 billion in their initial cryptocurrencies, ensuring a 232% recovery from when withdrawals were halted in November 2022.
Customers can expect to see the final distributions in their accounts within seven days.
Gemini to Distribute Over $2 Billion Among Earn Users
In late May, Gemini revealed a plan for the full recovery of digital assets for its Earn program users, including a $1.1 billion settlement.
This plan guarantees that users will receive the full value of their assets, potentially exceeding the initial amount due to asset appreciation during the holding period.
Gemini’s Earn program, launched in early 2021 with Genesis, offered customers the option to lend their crypto holdings for interest, promising a 7.4% return on deposits.
However, Earn was shut down in January 2023 after Genesis failed to repay over $900 million in assets owed to Gemini.
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