Gemini faces $50 million settlement for misleading investors with its Earn program

From Investing.com: 2024-06-15 08:30:11

Gemini will pay $50 million in a settlement for misleading investors with its Earn program. New York banned Gemini from crypto lending due to the program’s failure to disclose financial risks. The NY Attorney General is cracking down on crypto fraud, targeting dishonest companies in the industry.

Gemini’s Earn program promised secure returns but failed to disclose financial risks with partner Genesis. Internal reviews revealed instability in Genesis’s finances. The collapse of the investment scheme left investors struggling to recover their funds.

Affected investors will receive full reimbursement of their digital assets automatically. NY Attorney General James highlighted Gemini’s misleading practices, emphasizing the broken trust and misappropriated funds of thousands of investors.

Gemini is prohibited from operating any crypto lending programs in NY following the settlement. The company must cooperate in the OAG’s litigation against DCG, CEO Barry Silbert, and Genesis’s former CEO Soichiro Moro. The lawsuit was part of efforts to hold dishonest crypto companies accountable.

Attorney General James has been enforcing regulations in the cryptocurrency industry, settling with Genesis for $2 billion and recovering funds from other fraudulent companies. The Gemini settlement reflects ongoing efforts to protect investors in the volatile crypto market, urging New Yorkers and industry insiders to report suspicious activity.

Read more at Investing.com: Gemini’s $50 Million Lesson By CoinEdition