Gemini is going to pay another $50 million in excess of settlement income soon.

The New York attorney general's office said on Friday that it has recovered nearly $50 million from cryptocurrency platform Gemini on behalf of more than 230,000 investors who participated in the company's earnings program.

“Hundreds of thousands of people, including at least 29,000 New Yorkers, have had their trust broken and defrauded of their money by Gemini through the False Claims Program,” Attorney General Leticia James said in a statement. “Gemini marketed the Earn program as a way for investors to grow their money, but then lied and fleeced investors out of their accounts.”

This latest announcement is in addition to the $2 billion payment that Gemini's office received last month from Gemini Discover partner Genesis, which will restore users of Gemini's revenue. With Gemini's additional $50 million, investors will now be fully invested on a “coin-for-coin basis,” according to the consent order.

“Today's settlement will make defrauded investors whole and should remind cryptocurrency companies that defrauding investors is illegal and will not be tolerated by my office,” James said.

Both settlements allege that Gemini misled investors about the risks associated with the Earn program, which it offered in partnership with Genesis Global Capital. The deal provides for full recovery of assets that investors were unable to withdraw when the program collapses in November 2022. As part of the settlement — which Genesis has neither admitted nor denied the allegations — the company is barred from operating in New York.

The agreement calls for the company to cooperate with the attorney general's office against Digital Currency Group, its CEO Barry Silbert and former Genesis CEO Michael Morrow.

Under the consent order filed with the court, Gemini will return approximately $50 million worth of digital assets directly to investors within seven days. As stated in the announcement, affected investors can access their digital assets in their accounts without taking any special action. Gemini can no longer offer crypto loan products in New York.

Last week, the New York attorney general's office filed a $1 billion lawsuit against crypto companies that “targeted immigrant and religious communities with promises of financial freedom, instead robbing them of their money and draining their life savings,” James said.

Editor's Note: This article was written with the help of AI. Edited and fact-checked by Ryan Ozawa.