New York’s AG Takes on Crypto: Gemini’s $50 Million Lesson
- Gemini to pay $50 million over misleading Earn program.
- NY bans Gemini from crypto lending.
- NY Attorney General targets crypto fraud.
New York Attorney General Letitia James has secured a $50 million settlement from Gemini Trust Company, LLC (Gemini) to compensate over 230,000 investors, including 29,000 New Yorkers, who were allegedly misled by Gemini’s Earn program. The program, promising secure returns, failed to disclose significant financial risks associated with partner firm Genesis.
Gemini’s Earn program lured investors by promising to grow their money, but internal reviews showed that Genesis’s finances were unstable. Gemini was aware that Genesis’s loans lacked adequate protection and were mostly tied up with entities like Sam Bankman-Fried’s Alameda. However, Gemini did not disclose this to investors.
When the investment scheme collapsed, many investors struggled to recover their funds. The Attorney General’s office investigated these claims and found compelling evidence that Gemini misled investors.
The settlement ensures that all affected investors will receive full reimbursement of their digital assets automatically, without having to take …
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