Gemini plans to reimburse customers who earn more than $1 billion.
Key Takeaways
- Gemini committed to fully repay more than $1.1 billion to Earn customers as part of a settlement with NYDFS following the bankruptcy of service provider Genesis.
- The settlement includes a $40 million contribution to Genesis’ bankruptcy proceedings and a $37 million payment to NYDFS.
- NYDFS’ investigation into Gemini uncovered practices that threatened the company’s financial health.
The New York Department of Financial Services (NYDFS) released a settlement agreement that ensures: Customers of the Gemini Earn program, which is currently inactive, will receive back all of their investments. A total of over $1.1 billion.
The move comes after the program service provider, Genesis Global Capital (GGC), went bankrupt, impacting program operations and participants.
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NYDFS outlined plans for Gemini, led by Winklevoss, to contribute. $40 million in GGC bankruptcy and add $37 million paid to NYDFS.
Gemini too Earn commits to secure at least $1.1 billion for customers. Coinciding with the completion of Genesis’ bankruptcy proceedings, this promise was highlighted in a post on the Gemini Return the customer’s digital assets in full, Awaiting judicial approval.
This resolves the concerns raised by the Blue House. Genesis customer withdrawal suspended By November 2022, approximately 200,000 customers were affected.
Genesis’ bankruptcy filing in January 2023 follows NYDFS’ claims. Gemini has not properly researched GGC. For compliance purposes.
This lack of due diligence came under further scrutiny when the Attorney General’s Office accused other divisions of Genesis of fraud. Vulnerabilities within the Earn program and backend operations.
Moreover, NYDFS’s investigation found that Gemini engaged in practices that jeopardized its financial stability.
An unregulated affiliate, Gemini Liquidity, LLC, collected hundreds of millions of dollars in fees from Gemini customers that could otherwise have returned to Gemini, significantly weakening Gemini’s financial position.
This agreement is an important step toward resolving the uncertainty facing Gemini Earn customers.
In other news, the Winklevoss twins, co-founders of Gemini, recently donated $4.9 million to Fairshake PAC to boost the electoral prospects of cryptocurrency supporters in the upcoming US elections.
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