Gemini, a cryptocurrency platform, will pay $50 million to investors defrauded by its Earn program in New York. This settlement, announced by New York Attorney General Letitia James, also bans Gemini from operating lending programs in the state.
The lawsuit alleges Gemini deceived investors out of over $3 billion, with internal documents showing the company knew about the program’s high risks. “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,” stated James.
Gemini Earn investors, over 230,000 in total, will be refunded $50 million in digital assets without needing to take action. The program had offered high interest rates for lending crypto to Genesis Global Capital, which suspended redemptions and filed for bankruptcy following FTX’s collapse.
This settlement marks a crucial step in holding cryptocurrency firms accountable for deceptive practices and protecting investor rights.
