New York Attorney General Letitia James has secured a $50 million settlement from the cryptocurrency platform Gemini Trust Company, LLC.
This settlement benefits over 230,000 investors, including at least 29,000 New Yorkers, who were defrauded through the Gemini Earn program.
Gemini’s $50 Million Settlement
Gemini allegedly misled investors about the risks associated with the Gemini Earn program. This was an investment scheme it offered alongside Genesis Global Capital. As part of the settlement, defrauded investors will recover the assets they invested in the program.
The agreement also bans Gemini from operating any cryptocurrency lending programs in New York. Furthermore, Gemini must cooperate with the Office of Attorney General’s (OAG) litigation against Digital Currency Group (DCG), its CEO Barry Silbert, and Genesis’ former CEO Soichiro Moro.
“Hundreds of thousands of people, including at least 29,000 New Yorkers, had their trust broken and their money swindled by Gemini 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,” Attorney General James said.
Gemini will return approximately $50 million worth of cryptocurrencies to investors who were locked out of their accounts.
Read more: Gemini vs. Coinbase: Everything You Need To Know
In October 2023, Attorney General James sued Gemini for misleading investors about the risks of the Gemini Earn program. The OAG’s investigation revealed that Gemini’s internal analyses indicated the financial instability of Genesis, but this information was not disclosed to investors.
Last month, Attorney General James secured $2 billion from Genesis for defrauded victims.
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