February 1, 2022, Brazil. In this photo illustration, the Gemini Trust Company logo is displayed on a smartphone screen and in the background
Gemini Trust has announced that users affected by the Earn program can expect to receive “100% of the assets owed to them” within seven days.
The New York Attorney General’s office has secured more than $50 million from Gemini to be returned to investors involved in the exchange’s Earn program.
In a June 14 announcement, New York Attorney General Letitia James stated that the $50 million settlement resolved a lawsuit filed by her office in October 2023. The lawsuit accused Gemini of defrauding 230,000 investors, including New York residents, through its Earn program with Genesis Global Capital by failing to disclose the associated risks.
“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,” said James. “Gemini marketed its Earn program as a way for investors to grow their money but actually lied and locked investors out of their accounts.”
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In May, James’ office reached a similar settlement with Genesis, requiring the company to pay $2 billion to defrauded investors over the Earn program. According to the New York Attorney General, the settlements specifically addressed issues with Genesis and Gemini, while the lawsuit against Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro will continue.
The settlement prohibits Gemini from operating any cryptocurrency lending program in New York state. James confirmed on social media platform X that “everyone that Gemini deceived will get their money back.” Gemini Trust assured that affected Earn users would receive “100% of the assets owed to them” within a week.
The Attorney General’s office has been actively pursuing legal action against other crypto firms allegedly operating illegally in New York. In 2023, lawsuits were filed against former Celsius CEO Alex Mashinsky and KuCoin. Mashinsky is facing criminal charges in the Southern District of New York, with a trial expected in January 2025.
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