New York returned $50 million from Gemini to defrauded investors
New York Attorney General Leticia James has recovered $50 million in fraudulent payments from Gemini users.
The proceeds will be used to repay more than 230,000 investors, 29,000 of whom are New Yorkers, James said in a press release.
“Gemini marketed the Earn program as a way for investors to grow their money, but they lied and bailed investors out of their accounts. “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,” New York's attorney general said.
Gemini neighborhood
The Gemini Income program offered by crypto exchange Gemini has faced problems in 2022, including crypto lenders Genesis.
James sued Gemini in October 2023, alleging that the exchange lied to investors by marketing investments through Genesis as a “low-risk investment.”
Today's announcement of the $50 million refund comes just days after Gemini announced that it will repay its users in full, the first payment of more than $2 billion.
On Friday, James said the agreement with Gemini included an agreement that the exchange would not offer its crypto lending programs in New York state.
