Gemini Agrees To $50 Million Settlement With New York AG

Source Bitcoinist
Jun 15, 2024 20:00

The New York State Attorney General’s Office has secured a settlement of approximately $50 million with the crypto exchange Gemini Trust Company, LLC (Gemini). This marks the latest development in a high-stakes lawsuit involving the New York AG, Gemini, its former business partner Genesis Global Capital, and several other defendants.

Gemini Banned From Running Crypto Lending Program

In a press release on Friday, New York Attorney General Letitia James announced the successful recovery of $50 million from Gemini targeted at compensating victims who lost money to the exchange’s popular earn program. 

James stated that over 230,000 investors, including 29,000 New Yorkers were deceived into investing in Gemini’s Earn, an investment initiative run collaboratively with defunct crypto lender Genesis Global. 

The attorney General said: 

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

Following the bankruptcy filings of Genesis in November 2022,  the Gemini Earn program collapsed, denying investors access to over $900 million worth of their assets.

In October 2023, the New York Office of the Attorney General filed a lawsuit against Gemini, Genesis, and its parent company Digital Currency Group (DCG), as well as DCG’s CEO Barry Silbert and former Genesis boss Saichiro Moro.

Aside from the recent payment by Gemini,  this lawsuit has also resulted in the $2 billion settlement deal with Genesis, the largest ever granted to a cryptocurrency firm by a state. As part of its deal, Gemini has also been prohibited from operating any crypto lending company in New York. In addition, the exchange is required to assist the New York AG in the ongoing litigations against other defendants 

Commenting on her most recent victory, Letitia James said: 

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. 

In the past few years, Attorney General Letitia James has gained much attention in enforcing regulation in the crypto space. Notably, she has launched several lawsuits against perceived defaulting crypto companies including KuCoin, and Nexo winning settlements to the tune of $22 million and $24 million respectively.

Crypto Market Overview

In other news, the crypto market has declined by 1.05% in the last day, bringing the total market cap to around $2.4 trillion. Of the figures, Bitcoin remains the most dominant digital asset with a market cap of $1.4 trillion. The market leader is followed by Ethereum with a market cap of $445.27 billion thus accounting for 18% of the crypto market. 

Gemini
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Hasn’t Reached Bull Cycle Top Yet, Quant Explains WhyAccording to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
Author  NewsBTC
According to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
placeholder
Spot Ethereum ETFs To Launch In 8 Days, Bloomberg Expert ConfirmsAfter months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
Author  Bitcoinist
After months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
goTop
quote