According to a breaking development, cryptocurrency exchange Gemini has agreed to pay $50 million to settle a New York fraud case.
New York Attorney General Letitia James announced today that the state is recovering $50 million as part of a settlement agreement with cryptocurrency exchange Gemini. Recovered funds will be returned to Gemini Earn customers involved in a multi-firm bankruptcy process.
Gemini has agreed to cooperate in a massive $3 billion fraud lawsuit against former partners Digital Currency Group (DCG), DCG founder and chairman Barry Silbert, and former chairman of the now-defunct Genesis, Soichiro “Michael” Moro.
The lawsuit filed against Gemini by New York in October accused the exchange of misleading investors about its Gemini Earn product. The product involved former partners DCG and lender subsidiary Genesis.
While Earn customers' previously frozen funds have been returned, the long-running dispute between Gemini founders Cameron and Tyler Winklevoss and DCG's Silbert has not ended.
The NYAG lawsuit, amended in February, alleges the group defrauded investors of more than $3 billion. Citing internal documents at Gemini, the lawsuit argues that the exchange was aware that Genesis Capital posed “high risk.” Cameron Winklevoss has been outspoken in his criticism of the firm's former partners, regularly writing angry letters against them and directly calling for Silbert to be removed from DCG.
*This is not investment advice.
