The New York Attorney General’s office recently announced a significant recovery of funds amounting to more than $50 million from Gemini. This sum will be returned to investors involved in Gemini’s Earn program. This information was made public by New York Attorney General Letitia James in a notice dated June 14, where it was revealed that the $50 million was part of a settlement agreement resolving a lawsuit initiated by her office against Gemini back in October 2023.
The lawsuit accused Gemini of defrauding approximately 230,000 investors, a number that includes a substantial portion of New York residents. The core allegation was that Gemini, through its Earn program in collaboration with Genesis Global Capital, misrepresented the risks associated with the investment. As a result, many investors were left unaware of the true dangers and potential losses they were facing.
Attorney General James highlighted the impact of this deceit, noting that the trust of hundreds of thousands of people, including at least 29,000 from New York, had been violated. “Gemini’s Earn program was marketed as a reliable way for investors to grow their money,” said James, “but in reality, it locked investors out of their accounts under false pretenses.”
This settlement follows a similar major agreement in May, where Genesis was required to pay $2 billion to investors who were defrauded through the same Earn program. The scope of these settlements, Does not mark the end of legal actions. According to the New York Attorney General, litigation efforts are still ongoing against Digital Currency Group, its CEO Barry Silbert, and Soichiro Moro, the former CEO of Genesis.
As part of the settlement terms, Gemini has now been prohibited from operating any cryptocurrency lending programs within the state of New York. Attorney General James also took to social media to assure that all individuals deceived by Gemini will receive their full repayments.
Gemini Trust has confirmed that the affected participants in their Earn program will receive “100% of the assets owed to them” and can expect this restitution within seven days. This resolution aims to mend the trust that investors had placed in Gemini and to ensure they are made whole.
The office of New York’s Attorney General has been actively pursuing other cryptocurrency firms allegedly involved in illegal operations within the state. In 2023, lawsuits were filed against Alex Mashinsky, former Celsius CEO, and KuCoin, addressing their purported unlawful activities.
Alex Mashinsky is currently facing criminal charges in the Southern District of New York and is anticipated to undergo trial in January 2025. The rigorous legal actions against these entities underscore the broader regulatory crackdown on illicit practices within the cryptocurrency space, aiming to protect investors and uphold financial integrity.
Its infuriating that it took this long for investors to get their money back! This whole situation with Gemini is just a nightmare for those who trusted them.
It’s great to see corrective measures taken against fraud. Keep it up, Letitia James! 💪💼
Major respect for the NY Attorney General’s persistence in taking on these big players. Well deserved! 👏💼💪
**Mike**: Amazing work from the NY AG’s office! This is how we hold companies accountable!
Justice and financial integrity prevail! Hats off to the NY Attorney General!
What a significant victory for investors! Proud of the NY Attorney General’s office!
Gemini’s marketing was misleading from the start. It’s appalling that they took advantage of so many investors’ trust.
So Gemini gets away with just a settlement? Wheres the real accountability here? Investors deserve more than just restitution; they deserve justice.
Finally, some good news for those affected by the Earn program! Thank you, Letitia James!
**Olivia**: I’m thrilled about this resolution. Great job, NY Attorney General!
So glad to hear the investors will be reimbursed. Excellent work, NY AG!
Gemini claiming to refund 100% seems like too little, too late. The trust has already been broken, and many people’s financial plans were derailed.
It’s heartbreaking to see how many people were misled by Gemini. This settlement doesnt erase the stress and financial loss faced by the victims.
This settlement doesn’t feel like justice. Geminis ban on crypto lending in New York is too little, too late.
I can’t believe how long it took for this money to be returned. The damage to investors’ trust and financial stability can’t just be fixed by a simple payout.
Deceptive marketing should have more severe consequences. Gemini, Genesis, and anyone involved should face harsher penalties.
Wonderful to see investors getting their due. Great job, Attorney General James!
Another example of crypto companies playing fast and loose with investors’ money. When will there be real accountability?
This is disheartening for the crypto community as a whole. How can investors feel safe when firms like Gemini engage in such deceitful practices?
Restoring trust in the system one lawsuit at a time. Great job, AG James!
These crypto firms keep proving why they can’t be trusted. Geminis deceit has just shattered any trust people might have had in the Earn program.
Bravo to Letitia James and her team! This is a big win for all affected investors