NY Attorney General Secures $50M Settlement from Gemini Trust Company
Attention crypto investors! The New York Attorney General, Letitia James, has successfully obtained a $50 million settlement from the cryptocurrency platform Gemini Trust Company, LLC. This settlement is a significant win for over 230,000 investors, including at least 29,000 New Yorkers, who fell victim to fraudulent activities through the Gemini Earn program.
Gemini’s Misleading Practices
- Gemini misled investors about the risks associated with the Gemini Earn program.
- The program was an investment scheme offered in collaboration with Genesis Global Capital.
- As part of the settlement, defrauded investors will recover the assets they invested in the program.
Restrictions and Cooperation
- Gemini is now prohibited from operating any cryptocurrency lending programs in New York.
- The platform must cooperate with the Office of Attorney General’s litigation against Digital Currency Group (DCG), 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 said.
Restitution for Investors
Gemini has committed to returning approximately $50 million worth of cryptocurrencies to investors who were affected by the fraudulent activities and were unable to access their accounts.
Related: Gemini vs. Coinbase: A Comparative Analysis
Legal Action Against Gemini
- In October 2023, Attorney General James filed a lawsuit against Gemini for misleading investors about the risks associated with the Gemini Earn program.
- The investigation by the OAG revealed that Gemini’s internal analysis identified the financial instability of Genesis, but this information was not disclosed to investors.
Additionally, Attorney General James recently secured a $2 billion settlement from Genesis for victims who were defrauded by the company.
Hot Take: Ensuring Investor Protection in Cryptocurrency
Dear crypto enthusiasts, the recent $50 million settlement obtained by the New York Attorney General from Gemini Trust Company serves as a crucial reminder of the importance of investor protection in the cryptocurrency space. This significant legal action against deceptive practices in the industry sends a strong message to all companies operating in the crypto sphere. Stay informed, stay vigilant, and prioritize transparency and accountability in your investment decisions.
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