Cryptocurrencies

The New York Attorney General’s Office announced it has recovered more than $50 million from a company.

The New York Attorney General’s Office announced it has recovered more than $50 million from Gemini that will be returned to investors in the exchange’s Earn program.

In a June 14 opinion, New York State Attorney General Letitia James said $50 million contributed to the settlement of a lawsuit between her office and Gemini, originally filed in October 2023. The lawsuit alleged that Gemini defrauded 230,000 investors, including… Yorker – under its Earn program with Genesis Global Capital, did not disclose its risks.

“Hundreds of thousands of people, including at least 29,000 New Yorkers, have had their trust broken and their money siphoned off by Gemini through its fake Earn program,” James said. “Gemini marketed its Earn program as a way for investors to grow their money, but in reality it lied and blocked investors from accessing their accounts.”

Source: New York Attorney General, Letitia James

In May, James’ office announced a similar settlement with Genesis, requiring the company to pay $2 billion to investors defrauded by EARN. According to the New York Attorney General, the regulations apply only to Genesis and Gemini, and the lawsuit will continue against the cryptocurrency group, its CEO Barry Silbert and former Genesis CEO Soichiro Moro.

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The settlement prohibits Gemini from operating any cryptocurrency lending programs in New York state, and James said on Channel X that “everyone who was scammed by Gemini will get their money back.” Gemini Trust said affected Earn users can expect “100% of the assets owed to them” within seven days.

James’ office led the charge against other cryptocurrency companies allegedly operating illegally in New York by filing lawsuits against former Celisus CEO Alex Mashinsky and KuCoin in 2023. Mashinsky faces criminal charges in the Southern District of New York and is scheduled to go to trial in 2023. 2023. January 2025.

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Update (June 14 at 10:35 p.m. UTC): This article previously included a tweet from the New York Attorney General claiming that Gemini had been banned from working in New York. The tweet has since been updated to remove this claim.

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