Main Points:
- Gemini settles crypto fraud claim in New York and is banned from operating lending programs
- New York Attorney General recovers $50 million from Gemini and plans to reimburse investors
- Gemini accused of deceiving investors out of over $3 billion through Earn program
- Refund of $50 million to Gemini Earn investors who couldn’t access their accounts
- Gemini Earn offered attractive interest rates to investors
- Genesis Global Capital, a unit of Digital Currency Group, suspended redemptions and filed for bankruptcy
- Gemini is run by Cameron and Tyler Winklevoss
Gemini Settlement for Crypto Fraud Claim
In a settlement for a crypto fraud claim in New York, Gemini is required to refund $50 million to investors affected by their Earn program. The New York Attorney General will use the recovered funds to reimburse those who were deceived by Gemini’s misleading practices.
Allegations of Deception by Gemini
The lawsuit against Gemini alleges that the platform deceived investors out of over $3 billion through its Earn program. Attorney General Letitia James stated that hundreds of thousands of individuals, including New Yorkers, were misled by Gemini’s false promises of investment growth. The settlement aims to hold cryptocurrency companies accountable for deceiving investors.
Gemini Earn Program and Genesis Global Capital
Gemini’s Earn program offered attractive interest rates to investors who lent crypto to Genesis Global Capital, a unit of Digital Currency Group. Following Genesis’ bankruptcy filing, investors were left without access to their funds, leading to significant financial losses. Gemini, founded by Cameron and Tyler Winklevoss, faces scrutiny for its involvement in the fraudulent scheme.
