Gemini received $50M from New York AG in the Earn program

The New York Attorney General's Office announced that it has recovered more than $50 million from Gemini.

In a June 14 announcement, New York Attorney General Leticia James said $50 million between her office and Gemini was initially filed in October 2023. The lawsuit alleges Gemini defrauded 230,000 investors — including New York residents — in its Earn program, Genesis Global Capital, by failing to disclose the risks.

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

In May, James' office announced a similar settlement with Genesis, requiring the firm to pay $2 billion to investors defrauded by Earn. According to New York's attorney general, the settlements apply only to Genesis and Gemini, and the lawsuit will continue against Digital Currency Group, its CEO Barry Silbert and former Genesis CEO Soichiro Moro.

Related: Coinbase Reopens XRP Trading in New York

The settlement also barred Gemini from operating any cryptocurrency lending programs in New York state, and James told X that “everyone that Gemini defrauded will get their money back.” Gemini Trust said affected Ear users could expect “100% of the assets owed to them” within seven days.

James' office led a 2023 prosecution of former Celsius CEO Alex Mashinsky and KuCoin against other crypto firms allegedly operating illegally in New York. January 2025

Magazine: $2,500 Doco About FTX Drops On Amazon Prime … With Mom's Help

Update (June 14, 10:35 pm UTC): This article previously included a tweet from the New York Attorney General that Gemini was banned from operating in New York. The tweet has been updated to remove this claim.