Gemini, an exchange platform, has been ordered by the New York Attorney General’s office to return over $50 million to investors who participated in its Earn program. This announcement was made by Attorney General Letitia James on June 14, following a lawsuit filed in October 2023. The lawsuit accused Gemini of defrauding 230,000 investors, including New Yorkers, by not disclosing the risks associated with its Earn program in partnership with Genesis Global Capital.
James stated that Gemini had betrayed the trust of hundreds of thousands of individuals, with 29,000 being residents of New York. She emphasized that Gemini falsely promoted its Earn program as a means for investors to increase their funds, while actually preventing them from accessing their accounts.
In a separate settlement in May, James’ office reached an agreement with Genesis, requiring them to pay $2 billion to affected investors in the Earn program. However, the legal actions are ongoing against Digital Currency Group, CEO Barry Silbert, and former Genesis CEO Soichiro Moro.
Gemini has been prohibited from operating any cryptocurrency lending programs in New York as part of the settlement. James assured that all deceived investors would be refunded their money. Gemini Trust assured that all Earn program users would receive 100% of their owed assets within a week.
Attorney General James has been actively pursuing legal action against crypto firms operating unlawfully in New York. Lawsuits have been filed against former Celsius CEO Alex Mashinsky and KuCoin in 2023. Mashinsky is facing criminal charges in the Southern District of New York and is scheduled for trial in January 2025.
In other news, a documentary about the FTX collapse, costing $2,500, is set to be released on Amazon Prime, with some assistance from a mother.