{"id":323786,"date":"2024-06-15T00:17:08","date_gmt":"2024-06-14T18:47:08","guid":{"rendered":"https:\/\/dripp.zone\/news\/gemini-agrees-to-50-million-fraud-lawsuit-settlement-crypto-news\/"},"modified":"2024-06-15T00:21:12","modified_gmt":"2024-06-14T18:51:12","slug":"gemini-agrees-to-50-million-fraud-lawsuit-settlement-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/gemini-agrees-to-50-million-fraud-lawsuit-settlement-crypto-news\/","title":{"rendered":"Gemini Agrees To $50 Million Fraud Lawsuit Settlement – Crypto News"},"content":{"rendered":"

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Crypto exchange Gemini agreed to a $50 million settlement to resolve fraud claims following the collapse of its lending program, Gemini Earn. This comes after a crackdown on crypto-related lending programs in New York. Authorities say the settlement will reinstate defrauded investors while waning crypto firms of associated practices.\u00a0<\/span><\/p>\n

Gemini To Pay Investors $50 Million<\/strong><\/h2>\n

The company will resolve the lawsuit filed by New York\u2019s Attorney General <\/span>Letitia James<\/span><\/a> which accused the firm of lying to over 230,000 users of its Gemini Earn Program. According to the consent judgment disclosed on June 14, the company will pay about $50 million through complete restitution to affected users.<\/span>\u00a0<\/span><\/p>\n

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\u201c<\/span>Within seven (7) days of the execution of this Stipulation, Gemini agrees to make complete restitution to the Earn Investor on an in-kind \u201ccoin-for-coin\u201d basis as described in Paragraph 7 hereof i.e distributions made in the same amount and types of cryptocurrencies loaned by the Earn Investor.\u201d<\/span><\/i>\u00a0<\/span><\/i><\/p>\n<\/blockquote>\n

The lawsuit was filed in October accusing the firm of not disclosing the risk posed by <\/span>Gemini Earn<\/span><\/a>. The company described the program as a low-rain investment while investigations showed risky financials. According to James in a press release, at least 29,000 New York residents had their trust broken through the program adding that the settlement will reinstate investors and serve as a reminder to cryptocurrency companies.<\/span>\u00a0<\/span><\/p>\n

Per the press release, investors will not be required to take any action and will access their cryptocurrencies in the accounts.\u00a0<\/span><\/p>\n

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Banned From Operating In New York<\/strong><\/h2>\n

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In addition to the settlement fees, Gemini is banned from operating crypto lending programs in New York either directly or indirectly.<\/span><\/p>\n

\u201c<\/span>Gemini is permanently restrained and enjoined from directly or indirectly engaging in the lending of any cryptocurrency in the State of New York. Gemini certifies under penalties of perjury that it has ceased Gemini Earn and will not hereafter conduct or transact any business under Gemini Earn\u2026\u201d<\/span><\/i><\/p>\n

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However, in the event of future legislation that allows crypto lending programs in New York, the company will seek the OAG\u2019s permission to waive compliance with this provision.<\/span>\u00a0<\/span><\/p>\n

Also Read:<\/b> 4 Altcoin To Hit All-Time High Next; Buy Now<\/span><\/a><\/p>\n

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David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding. <\/p>\n<\/p><\/div>\n

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