The Attorney General of New York has successfully recovered over $50 million from Gemini, which will be returned to investors who were part of the exchange’s Earn program.
In an announcement made on June 14, Attorney General Letitia James revealed that the $50 million settlement resolved a lawsuit that was initially filed in October 2023 between her office and Gemini. The lawsuit accused Gemini of deceiving 230,000 investors, including residents of New York, through its Earn program with Genesis Global Capital, without disclosing the associated risks.
James stated, “Gemini misled hundreds of thousands of individuals, including at least 29,000 New Yorkers, by promoting its fraudulent Earn program. It was marketed as a way for investors to enhance their funds, but instead, investors were deceived and locked out of their accounts.”
In May, James’ office reached a similar settlement with Genesis, requiring the firm to pay $2 billion to investors who were defrauded through the Earn program. However, the settlements only applied to Genesis and Gemini, as the lawsuit is ongoing against Digital Currency Group, CEO Barry Silbert, and former Genesis CEO Soichiro Moro.
As a result of the settlement, Gemini is prohibited from operating any cryptocurrency lending program in New York State. James assured that all affected individuals who were deceived by Gemini would receive their funds back. Gemini Trust confirmed that Earn users can expect to receive “100% of the assets owed to them” within seven days.
James’ office has been actively pursuing legal action against other cryptocurrency firms operating unlawfully in New York, including filing lawsuits against former Celsius CEO Alex Mashinsky and KuCoin in 2023. Mashinsky is facing criminal charges in the Southern District of New York and is scheduled to go to trial in January 2025.
In other news, a documentary about the collapse of FTX, priced at $2,500, is now available on Amazon Prime with the assistance of a mother.
Gemini agrees to 50 million settlement with New York Attorney General for Earn program