New York Attorney General Letitia James has successfully reached a $50 million settlement with cryptocurrency exchange Gemini on behalf of investors in the Earn program. This agreement guarantees that all deceived investors will receive a full refund of their investments that were trapped when the program collapsed. Furthermore, Gemini is now prohibited from running any crypto lending programs in New York.
Gemini to Repay Earn Investors Approximately $50 Million in Digital Assets
The office of New York Attorney General Letitia James revealed on Friday that she has recovered around $50 million from Gemini Trust Company LLC for over 230,000 investors, including 29,000 New Yorkers, who participated in the Gemini Earn program and were victims of fraud.
According to the announcement, Gemini allegedly misled numerous investors about the risks linked to the Gemini Earn program, which was a joint venture with Genesis Global Capital. The settlement ensures that all affected investors will receive a full refund of their investments in the Earn program that they were unable to withdraw when the program failed.
This latest settlement follows Attorney General James' $2 billion agreement with Genesis and settles all claims against Gemini. The settlement includes a ban on Gemini operating any cryptocurrency lending programs in New York and requires the company to assist in the Attorney General's legal action against Digital Currency Group, Barry Silbert, and Genesis' former CEO Soichiro Moro.
The New York Attorney General's Office added:
As per the terms of the settlement, Gemini will return approximately $50 million in digital assets to investors who were locked out of their accounts in the Gemini Earn program.
Investors do not need to take any action to retrieve their digital assets, and they will have access to their assets in their accounts.
Attorney General James filed a lawsuit against Gemini last October, accusing the company of deceiving investors about the security of the Gemini Earn program. Despite claims by Gemini that investing with Genesis was low-risk, the lawsuit alleged that Gemini was aware of the under-secured loans and concentration of risks with Alameda, but failed to disclose this information to investors. Last month, Attorney General James secured a $2 billion settlement with Genesis to compensate the affected victims.
What are your thoughts on Gemini's settlement with New York Attorney General Letitia James? Additionally, how do you feel about New York's decision to bar Gemini from running cryptocurrency lending programs in the state? Share your opinions in the comments below.