Investigation Uncovers Undisclosed Risks
New York Attorney General Letitia James has reached a $50 million settlement with cryptocurrency exchange Gemini over allegations of fraud. The settlement aims to recover assets for investors who were allegedly defrauded through Gemini’s Earn program.
The investigation found that Gemini knew about the risks associated with its partner, Genesis, but failed to disclose them to investors. Genesis filed for bankruptcy in 2022, leaving Gemini unable to repay customers.
Settlement Details
As part of the settlement, Gemini will return $50 million worth of digital assets to 230,000 investors. The company has acknowledged the settlement and assured customers that they will receive 100% of the crypto assets owed to them.
Statement from Attorney General James
“Gemini broke the trust of hundreds of thousands of people, including New Yorkers, by lying about its Earn program,” said Attorney General James. “Today’s settlement will make defrauded investors whole and send a clear message that deceiving investors is illegal.”
Previous Settlement with Genesis
Last month, Genesis settled with the New York Attorney General for $2 billion, the largest crypto settlement in the state’s history.
