New York Attorney General Letitia James has recovered $50 million from Gemini Trust, with this being money defrauded from Gemini Earn users.
The recovered money will be used to repay the more than 230,000 investors, 29,000 of whom are New Yorkers, James said in a press release.
“Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts. Today’s settlement will make defrauded investors whole and should remind cryptocurrency companies that deceiving investors is illegal and will not be tolerated by my office,” the New York Attorney General said.
Gemini settlement
Gemini Earn program, offered by the crypto exchange Gemini, ran into problems in 2022 amid major collapses for crypto lenders, including Genesis.
James sued Gemini in October 2023, alleging that the exchange lied to investors by portraying investing in Genesis via Gemini Earn as “a low-risk investment.”
Today’s announcement of the recovered $50 million comes a few days after Gemini announced full repayment for its Earn users, with over $2 billion as the initial repayment.
On Friday, James said the settlement with Gemini includes an agreement that the exchange will not offer its crypto lending programs in the state of New York.
