Gemini Trust has agreed to return $50 million to customers who invested in the failed investment program Gemini Earn to settle a lawsuit brought by New York Attorney General Letitia James. The lawsuit was filed in October, accusing Gemini of deceiving customers about the risks involved in the program. The settlement will benefit over 230,000 investors, including 29,000 New Yorkers, who will be reimbursed by the cryptocurrency platform. This is a significant victory for James and a relief for those who were affected by the fraud.
Letitia James announced the victory on social media, stating that everyone who was deceived by Gemini will receive their money back. This settlement comes after another successful lawsuit by James against Genesis Trading, a crypto platform that was also accused of lying to customers about the risks of investing in Gemini Earn. The Attorney General’s Office confirmed that eligible investors will not need to take any action to recover their digital assets, as they will receive them in their accounts.
The settlement with Gemini also includes a ban on the company operating any cryptocurrency lending program in New York. This is part of James’ efforts to crack down on crypto companies that engage in deceptive practices. The New York Attorney General’s Office emphasized that the settlement ensures full recovery for investors who were unable to withdraw their assets when the Gemini Earn program collapsed. James stated that the settlement serves as a reminder to cryptocurrency companies that deceiving investors is illegal and will not be tolerated by her office.
Gemini Earn was a crypto lending program that offered high interest rates to customers who lent their assets to third-party borrower Genesis. However, the program froze customers’ assets for months before agreeing to return them. The lawsuit brought by James exposed the deceptive practices of Gemini and Genesis, leading to the recovery of $50 million for defrauded investors. The settlement is a significant step towards holding crypto companies accountable for their actions and protecting investors from fraudulent schemes in the industry.
The victory in the Gemini Trust lawsuit is a testament to the efforts of the New York Attorney General’s Office to protect consumers and investors in the cryptocurrency space. By securing full recovery for defrauded investors and imposing a ban on future cryptocurrency lending programs by Gemini, James has sent a strong message to other companies in the industry. The settlement serves as a warning that deceptive practices will not be tolerated, and that cryptocurrency companies must comply with regulations to ensure the integrity of the market and the protection of investors.
