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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.

article-image

StarkWare takes a step towards making StarkNet for Bitcoin

article-image

The numbers point to one conclusion: Risk is back, or at least it was during the first half of the year