Crypto News Today- Gemini Crypto Exchange to Pay $50 Million for Fraud Allegations
Crypto News– New York Attorney General Letitia James has successfully negotiated a $50 million settlement with Gemini Trust Company, LLC, a prominent cryptocurrency platform. This settlement will benefit more than 230,000 investors, among them at least 29,000 New Yorkers, who were victims of fraud through the Gemini Earn program.
Gemini Reaches $50 Million Settlement
Gemini is accused of misleading investors about the risks involved with their Gemini Earn program, an investment scheme they offered in partnership with Genesis Global Capital. As a result of the settlement, defrauded investors will be able to recover the assets they had invested in this program.
Additionally, the settlement prohibits Gemini from running any cryptocurrency lending programs in New York. Gemini is also required to cooperate with the Office of the Attorney General’s ongoing litigation against Digital Currency Group (DCG), its CEO Barry Silbert, and Genesis’ former CEO Soichiro Moro.
Hundreds of thousands of people, including at least 29,000 New Yorkers, had their trust broken and their money swindled by Gemini through its bogus Earn program. This settlement will make defrauded investors whole and should remind cryptocurrency companies that deceiving investors is illegal and will not be tolerated by my office.
Attorney General James
In October 2023, Attorney General Letitia James filed a lawsuit against Gemini for misleading investors about the risks associated with the Gemini Earn program. The Office of the Attorney General’s investigation uncovered that Gemini’s internal analyses had revealed the financial instability of Genesis, yet this critical information was not shared with investors.
Just last month, Attorney General James successfully secured $2 billion from Genesis to compensate the defrauded victims.
FAQs
What are the fraud accusations against Gemini?
Gemini is accused of misleading investors about the risks associated with the Gemini Earn program, an investment scheme offered in partnership with Genesis Global Capital. Investigations revealed that Gemini was aware of the financial instability of Genesis but did not disclose this information to investors.
What is the Gemini Earn program?
The Gemini Earn program was an investment scheme that allowed users to lend their cryptocurrency assets in exchange for interest. This program was offered in collaboration with Genesis Global Capital.
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