Crypto News- Gemini has announced plans to reimburse customers affected by the collapse of the Gemini Earn program, which saw assets locked up due to the bankruptcy of Genesis, the lending platform behind the initiative. Superintendent Harris of the NYDFS clarified Gemini’s failure to conduct thorough due diligence on Genesis, leading to significant losses for customers.
Gemini Faces NY Regulatory Order: Return 1.1 Billion dollars to Earn Customers
Gemini faces a hefty $37 million fine from the NYDFS for systemic failures that jeopardized company stability. Uncertainty looms for Gemini Earn users, unsure if they’ll recover their assets fully. Reports suggest they might only receive 61% of their crypto’s value from January 19, 2023, the bankruptcy filing date. Confusion persists over asset protection, with some mistakenly believing FDIC coverage applied.
Gemini’s response to the collapse of the Gemini Earn program has come under intense scrutiny, eliciting criticism from disillusioned customers who feel left in the dark amidst the chaos. The lack of clarity surrounding asset protection and FDIC status has only added to the confusion and frustration of affected users.
As the fallout from the Genesis bankruptcy continues to unfold, Gemini finds itself navigating treacherous waters, facing not only financial repercussions but also a severe dent in its reputation. The $37 million fine imposed by the NYDFS underscores the gravity of the situation, highlighting the significant failures that jeopardized both the company’s stability and the trust of its customer base.
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