Gemini Trust has agreed to refund $50 million in cryptocurrency to investors of its failed investment program, Gemini Earn. This settlement comes after a legal battle initiated by New York Attorney General Letitia James.
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James secured a victory in October by suing the company for misleading customers about the risks associated with the program. More than 230,000 investors, including 29,000 New Yorkers, will be reimbursed by the crypto platform as a result.
Gemini, the cryptocurrency exchange, has recovered $50 million after defrauding thousands of investors. Gemini is reimbursing all affected individuals.https://t.co/tfQf1wxijE
— NY AG James (@NewYorkStateAG) June 14, 2024
James announced on X on Friday, “We have recovered $50 million from Gemini cryptocurrency platform for defrauding thousands of investors. Everyone who was deceived by Gemini will receive their money.”
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James achieved another victory by suing Genesis Trading, a crypto platform, for misleading customers about the risks associated with the Gemini Earn investment program. This led to a $2 billion compensation from Genesis, highlighting the consequences of deceptive practices.
In a statement, the New York Attorney General‘s Office mentioned that the settlement ensures full recovery for defrauded shareholders who had invested in Gemini Earn but couldn’t withdraw their assets due to the program’s collapse. Eligible investors will receive digital asset credits without having to take any action.
As part of the $2 billion settlement, Gemini is barred from conducting any crypto lending programs in New York.
James, in a news release, expressed that Gemini had deceived hundreds of thousands, including 29,000 New Yorkers, by falsely promoting its Earn program as a means of growing funds but actually blocking access to investors’ accounts. This settlement serves as a reminder to cryptocurrency firms about the repercussions of misleading investors.
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James highlighted that Gemini Earn, a crypto lending program, offered high interest rates for customers to lend their assets to Genesis Trading. However, the frozen assets of this now-defunct program have been returned to customers after months of uncertainty.