News

Gemini agrees to return at least USD 1.1 billion to clients

Friday 1 March 2024 10:29 CET | News

Cryptocurrency exchange Gemini has agreed to return at least USD 1.1 billion to customers as part of a settlement with the NYDFS.

 

Specifically, Gemini has reached a settlement with the New York Department of Financial Services (NYDFS) to return at least USD 1.1 billion to customers affected by its defunct lending program. Additionally, the company will pay a USD 37 million fine for what regulators termed 'significant failures.'

The lending programme, known as Gemini Earn, was suspended in November 2022. NYDFS Superintendent Adrienne Harris stated that Gemini neglected due diligence on an unregulated third party, later accused of substantial fraud. This led to financial harm for Earn customers, who found themselves unable to access their assets following a financial crisis at Genesis Global Capital, Gemini's partner in the program.

Gemini has expressed its efforts over the past 15 months to advocate for Earn users and secure the return of their assets. The company plans to return over USD 1.8 billion in value to customers, USD 700 million more than the amount halted during the November 2022 withdrawal suspension.

In addition to the restitution, Gemini will contribute USD 40 million towards the resolution of Genesis' bankruptcy to benefit Earn customers. The ongoing litigation between Genesis, Gemini, and Genesis' parent company, Digital Currency Group, has complicated the process since the Earn program's suspension according to bbc.com.

 

Cryptocurrency exchange Gemini has agreed to return at least USD 1.1 billion to customers as part of a settlement with the NYDFS.

 

What else has been going on with Gemini?

Gemini, co-founded by Tyler and Cameron Winklevoss, has been engaged in legal disputes before, notably with Facebook and its CEO Mark Zuckerberg. In January 2023, both Gemini and Genesis faced charges from US regulators for allegedly unlawfully selling cryptocurrency assets to hundreds of thousands of investors through the Earn programme, which launched in 2021. The case is under the jurisdiction of the US Securities and Exchange Commission.

In January 2024, Gemini was approved as a virtual asset services provider in France by the Autorite des Marches Financiers. The approval allowed Gemini to extend its services to retail and institutional clients in the country, and the company planned to launch its platform for French users in the coming weeks after completing final preparations.

In essence, Gemini customers in France gained the ability to trade over 70 cryptocurrencies through the firm's website and mobile app, along with the more advanced ActiveTrader platform. Institutional clients, on the other hand, gained access to Gemini eOTC, the company's electronic over-the-counter trading solution.


More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cryptocurrency, cryptocurrency exchange, lending, refund
Categories: DeFi & Crypto & Web3
Companies: Gemini
Countries: United States
This article is part of category

DeFi & Crypto & Web3

Gemini

|
Discover all the Company news on Gemini and other articles related to Gemini in The Paypers News, Reports, and insights on the payments and fintech industry: