Gemini, a cryptocurrency exchange, has agreed to pay back over $50 million to investors in its Earn program, according to the New York Attorney General’s office. The settlement comes after a lawsuit was filed in October 2023, accusing Gemini of defrauding 230,000 investors, including 29,000 New Yorkers, by not disclosing the risks associated with the Earn program. Attorney General Letitia James stated that Gemini falsely marketed the program as a way for investors to grow their money, but instead locked them out of their accounts.
In a similar settlement in May, Genesis Global Capital was required to pay $2 billion to defrauded investors. However, the lawsuit is ongoing against Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro. Gemini has been banned from operating any cryptocurrency lending program in New York state as part of the settlement. James assured that all deceived investors would receive their money back, with affected Earn users expected to get 100% of their assets within seven days.
James’ office has been actively pursuing legal action against other cryptocurrency firms operating unlawfully in New York, including filing lawsuits against former Celsius CEO Alex Mashinsky and KuCoin in 2023. Mashinsky is facing criminal charges in the Southern District of New York and is set to go to trial in January 2025.
In unrelated news, a documentary film about the FTX collapse, costing $2,500, is now available on Amazon Prime with the help of the filmmaker’s mother.