Gemini Trust Co. Agrees to $1.1 Billion Settlement
Gemini Trust Co. has reached a resolution with the New York Department of Financial Services (NYDFS) over the Gemini Earn program. The company has agreed to return $1.1 billion to customers and pay a $37 million fine. Here are the key points of the settlement:
NYDFS Announcement 🚀
– On February 28, 2024, Superintendent Adrienne A. Harris of NYDFS announced the settlement.
– The settlement requires Gemini to return at least $1.1 billion to Earn program customers through the Genesis Global Capital, LLC bankruptcy proceeding.
– Gemini will also contribute $40 million to the bankruptcy for the benefit of Earn customers.
– Superintendent Harris highlighted Gemini’s failure to conduct due diligence on the unregulated third party, which led to massive fraud allegations and harm to the Earn program customers.
Gemini’s Response and Updates 🔒
– Gemini acknowledged the settlement in its Earn Updates and expressed optimism that all Earn users would receive 100% of their digital assets back in kind.
– The settlement is pending final approval, and the Bankruptcy Court process could take up to two months to complete.
– Gemini has committed to returning over $1.8 billion in value at current prices, surpassing the amount halted during the Genesis withdrawal in November 2022.
– Earn users can expect to receive approximately 97% of their assets back within two months, with the remainder delivered within the next 12 months.
Hot Take 💡
Gemini’s $1.1 billion settlement marks a significant milestone in the Gemini Earn Program saga. This resolution addresses compliance lapses, fraud allegations, and reputational damage caused during the program, offering a path for Earn program customers to receive their rightful compensations.
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