Gemini Pays $50 Million to Settle Cryptocurrency Fraud Allegations
Cryptocurrency exchange Gemini Trust has agreed to pay $50 million to settle allegations brought by the New York State Attorney General accusing the company of defrauding investors.
Last October, Attorney General Letitia James filed a lawsuit against Gemini, accusing the platform of lying to more than 230,000 investors about the risks associated with its Gemini Earn investment program.
Under the settlement announced today, Gemini will return approximately $50 million in crypto assets to investors whose accounts were frozen when the program collapsed. Gemini will also be banned from operating a cryptocurrency lending program in New York, according to James.
Deceive investors
“Hundreds of thousands of people, including at least 29,000 New York City residents, had their trust betrayed and scammed out of their money by Gemini through its fake EARN program,” James explained in a statement. “Investors who were victims of the fraud will receive a full refund from “During today’s settlement decision, cryptocurrency companies should remember that deceiving investors is illegal and will not be tolerated.”
