Gemini to Pay $50 Million Over Fraud Claim
Gemini will pay $50 million to settle fraud claims, compensating over 230,000 investors misled by the Gemini Earn program. At least 29,000 New Yorkers will benefit from this settlement. Gemini faces a ban from operating crypto lending in New York and must assist the Office of the Attorney General (OAG) in its case against Digital Currency Group (DCG).
Gemini’s $50 Million Settlement
New York Attorney General Letitia James secured the $50 million settlement from Gemini Trust Company, LLC. The settlement addresses the company’s alleged deception of investors regarding the risks of the Gemini Earn program. This program, offered with Genesis Global Capital, misled many investors, causing significant financial losses.
Benefits for Defrauded Investors
As part of the settlement, defrauded investors will recover their lost assets. Gemini will return approximately $50 million worth of cryptocurrencies to those affected. This settlement ensures that over 230,000 investors, including 29,000 New Yorkers, will receive compensation for their losses.
Regulatory Actions and Future Implications
The agreement also bans Gemini from operating any cryptocurrency lending programs in New York. Furthermore, they must cooperate with the OAG’s litigation against DCG, its CEO Barry Silbert, and Genesis’ former CEO Soichiro Moro. This cooperation aims to hold these entities accountable for their roles in the deceptive practices associated with the Earn program.
Attorney General’s Statement
Attorney General James emphasized the importance of this settlement. “Hundreds of thousands of people, including at least 29,000 New Yorkers, had their trust broken and their money swindled through its bogus Earn program. This settlement will make defrauded investors whole and should remind cryptocurrency companies that deceiving investors is illegal and will not be tolerated by my office,” she said.
TL;DR
The $50 million settlement marks a significant victory for defrauded investors. By returning lost assets and cooperating with ongoing litigation, It will face consequences for its actions. This case serves as a reminder that regulatory bodies are committed to protecting investors and holding cryptocurrency companies accountable for deceptive practices.
