Gemini, NYAG reach $50M settlement 

As part of the settlement, Gemini is banned from operating crypto lending programs in New York.

article-image

New York Attorney General Letitia James | lev radin/Shutterstock modified by Blockworks

share

The New York Attorney General’s office said it recovered $50 million from Gemini for “defrauded investors” on Friday.

As part of the settlement, Gemini is banned from operating crypto lending programs in New York. 

The settlement also states Gemini Earn investors will receive $50 million in digital assets. The press release said that impacted investors will be able to access the crypto directly in their accounts. 

“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,” said New York Attorney General Letitia James. 

Read more: NYAG says Genesis settlement to pay back creditors up to $2B

Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts. Today’s 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 continued.

Gemini said it was “pleased to announce that in connection with the final Earn distribution, Gemini has entered into an agreement with the New York Attorney General to settle the lawsuit the NYAG brought against Gemini…”

Gemini was a named defendant in a larger lawsuit brought on by the NYAG in the fall of last year. Bankrupt lender Genesis and its parent company Digital Currency Group were also named in the suit.

As part of the settlement, Gemini will also “cooperate with the Office of the Attorney General’s litigation” against DCG, DCG CEO Barry Silbert and former Genesis CEO Soichiro Moro.

Friday’s announcement is the second settlement to come out of the suit, following a $2 billion settlement reached between the NYAG and Genesis

The NYAG announced the Victim’s Fund for Genesis creators in late May after a bankruptcy judge approved the settlement.

Updated June 14, 2024 at 1:13 pm ET: Added comment from Gemini representative.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Pipe’s testnet has delivered 60+ PB of data across ~290,000 Point of Presence (PoP) nodes

article-image

375ai will hold TGE at the end of the month, CEO Harry Dewhirst told Blockworks

article-image

Block’s subsidiary adds direct Bitcoin integration and AI-powered ordering tools for small businesses seeking streamlined transactions

by Blockworks /
article-image

The deal integrates Dinero’s staking suite into Plume’s real-world asset platform as it gains SEC transfer agent status

by Blockworks /
article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /