Gemini Settles with NYAG for $50M Over Misleading Investors

Gemini, a top cryptographic exchange, has settled with the New York Attorney General (NYAG) for $50 million after allegedly cheating almost 230,000 investors including about 29,000 in New York.

NYAG Letitia James accused Gemini of misleading investors through its Gemini Earn program which promised returns on cryptocurrencies given out as loans to Genesis Global Capital that is now bankrupt.

Through this settlement, which bars Gemini from future cryptocurrency lending programs in New York, James aims to provide restitution to those investors who could not access their funds when the programme crashed in November 2022.

According to AG James, even though Gemini knew the risks associated with Genesis’ loans it marketed this program as if it was low-risk.

Gemini accepted the settlement and assured that final earn program funds will be paid out within a week. AG James called on other victims to report similar deceptive practices by crypto companies in order to protect consumers and maintain industry standards.

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Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.