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BREAKING: Another Crisis Resolved in the Cryptocurrency World – Gemini Will Return 1 Billion Dollars to Its Customers

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The New York Department of Financial Services (DFS) today announced a settlement with Gemini, the cryptocurrency firm founded by the Winklevoss twins. The deal relates to its product called Gemini Earn.

As part of the consent decree, Gemini agreed to pay a $37 million penalty and fully repay funds owed to Earn customers, totaling more than $1 billion.

This agreement was the latest setback for Gemini, which is also facing lawsuits filed by the New York attorney general and the Securities and Exchange Commission (SEC) due to its problematic Earn product. The product was launched in partnership with Digital Currency Group's lender Genesis.

“Gemini failed to exercise due diligence on an unregulated third party who was later accused of massive fraud and harmed Earn customers who were unable to access their assets after Genesis Global Capital suffered a financial collapse,” said DFS Investigator Adrienne Harris.

During the last bull cycle, Gemini, which operates primarily as an exchange, launched the Earn program, which ended badly. This program allowed customers to lend cryptocurrency for a return of up to 13%. The only counterparty in the arrangement was Genesis, the lender to Barry Silbert cryptocurrency empire Digital Currency Group.

Genesis also lent cryptocurrencies to firms such as hedge fund Three Arrows Capital and FTX-affiliated trading firm Alameda Research. With the collapse of these companies, customers of the Earn program could not get their crypto money back.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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