Settlement with Genesis
Gemini has reached an agreement with Genesis and other creditors to repay all Earn Program customers. This means that customers will receive 100% of their digital assets back, regardless of their value when they were deposited.
Value of Assets
The total value of the assets to be returned is over $1.8 billion, which is $700 million more than the value of the assets when withdrawals were halted two years ago.
Timeline
- 97% of assets will be returned within two months of court approval.
- The remaining 3% will be returned within 12 months.
- The bankruptcy court process could take up to two months to complete.
Genesis Agreement with SEC
Gemini partnered with Genesis Global Capital (GGC) for the Earn Program. The SEC charged both companies for offering unregistered securities through the program. GGC agreed to pay a $21 million penalty as part of a settlement with the SEC.
Gemini’s Fine
The New York State Department of Financial Services (NYDFS) fined Gemini $37 million for failing to conduct proper due diligence on GGC and maintain adequate reserves.
NYDFS’s Statement
NYDFS Superintendent Adrienne Harries said that the settlement is a victory for Earn customers. She criticized Gemini for failing to protect customers’ assets.
Additional Notes
- The settlement is subject to court approval.
- NYDFS reserves the right to take further legal action if Gemini fails to fulfill its obligations.
