Home US Cryptocurrency exchange Gemini, founded by the Winklevoss twins who are collectively worth $2.8 billion, will return $1.1 billion to customers and pay a $37 million fine as New York Attorney General Letitia James sues , keep going.

Cryptocurrency exchange Gemini, founded by the Winklevoss twins who are collectively worth $2.8 billion, will return $1.1 billion to customers and pay a $37 million fine as New York Attorney General Letitia James sues , keep going.

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Cryptocurrency exchange Gemini, run by billionaire twins Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers of its defunct lending program and pay a $37 million fine for unsafe and unsound practices.

The fund is part of a settlement with the New York Department of Financial Services, the regulator said Wednesday, as a separate lawsuit from New York Attorney General Letitia James continues.

Gemini’s Earn program, which was offered in partnership with cryptocurrency lender Genesis Global Capital, was halted during a cryptocurrency market crash in November 2022.

That dislocation caused Genesis to file for bankruptcy and has led to extensive litigation against Genesis, Gemini and Genesis’ parent company, Digital Currency Group.

The group went through a series of layoffs in 2022 and 2023, sparking controversy when a video of the twins, each valued at $1.4 billion according to Forbes, was released. performing ‘Don’t Stop Believin’ by Journey with his cover band went viral days after a round of cuts.

Cryptocurrency exchange Gemini, run by billionaire twins Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers of its defunct lending program and pay a $37 million fine for unsafe and unsound practices.

Cryptocurrency exchange Gemini, run by billionaire twins Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers of its defunct lending program and pay a $37 million fine for unsafe and unsound practices.

The group went through a series of layoffs in 2022 and 2023, sparking controversy when a video of the twins - each valued at $1.4 billion according to Forbes - performing Journey's 'Don't Stop Believin' went viral days later. of a round of cuts.

The group went through a series of layoffs in 2022 and 2023, sparking controversy when a video of the twins - each valued at $1.4 billion according to Forbes - performing Journey's 'Don't Stop Believin' went viral days later. of a round of cuts.

The group went through a series of layoffs in 2022 and 2023, sparking controversy when a video of the twins – each valued at $1.4 billion according to Forbes – performing Journey’s ‘Don’t Stop Believin’ went viral days later. of a round of cuts.

Earlier this month, James expanded his lawsuit against crypto companies Genesis and Gemini, tripling the size of his alleged fraud scheme to more than $3 billion.

The amended complaint is based on a lawsuit James filed in October against Digital Currency Group, its Genesis Global Capital unit, and Gemini Trust, the exchange run by the twin brothers.

He claimed they caused more than $1 billion in losses by misleading investors about the Gemini Earn program, which allowed customers to lend crypto assets to Genesis in exchange for a high rate of return.

The attorney general said that as more investors came forward, it became clear that ‘the scam perpetrated by DCG through Genesis also ensnared investors who sent money directly to Genesis and were falsely assured that their money was safe.’

Many of the additional investors were small retail clients, including a chiropractor and a stay-at-home father, each of whom invested $2 million in bitcoin with Genesis, according to the complaint.

James is seeking more than $3 billion in restitution for the more than 230,000 investors he believes were defrauded.

“This illegal cryptocurrency scheme and the horrific financial losses that real people have suffered are another reminder of why stricter cryptocurrency regulations are needed to protect all investors,” James said in a statement.

Barry Silbert, CEO of DCG, and Soichiro Moro, former CEO of Genesis, are also charged.

The fund is part of a settlement with the New York Department of Financial Services, the regulator said Wednesday, as a separate lawsuit from New York Attorney General Letitia James continues.

The fund is part of a settlement with the New York Department of Financial Services, the regulator said Wednesday, as a separate lawsuit from New York Attorney General Letitia James continues.

The fund is part of a settlement with the New York Department of Financial Services, the regulator said Wednesday, as a separate lawsuit from New York Attorney General Letitia James continues.

Gemini's Earn program, which was offered in partnership with cryptocurrency lender Genesis Global Capital, was halted during a cryptocurrency market crash in November 2022.

Gemini's Earn program, which was offered in partnership with cryptocurrency lender Genesis Global Capital, was halted during a cryptocurrency market crash in November 2022.

Gemini’s Earn program, which was offered in partnership with cryptocurrency lender Genesis Global Capital, was halted during a cryptocurrency market crash in November 2022.

That dislocation caused Genesis to file for bankruptcy and has led to extensive litigation between Genesis, Gemini and Genesis' parent company, Digital Currency Group.

That dislocation caused Genesis to file for bankruptcy and has led to extensive litigation between Genesis, Gemini and Genesis' parent company, Digital Currency Group.

That dislocation caused Genesis to file for bankruptcy and has led to extensive litigation between Genesis, Gemini and Genesis’ parent company, Digital Currency Group.

A DCG spokesperson told DailyMail.com in a statement: ‘There is nothing new here. This is the same baseless complaint being recirculated to generate another round of headlines.

‘We will aggressively fight the claims and win. “DCG has always conducted its business legally and with integrity, and DCG and Barry Silbert will be fully vindicated.”

The settlement with the New York Department of Financial Services means that Gemini’s Earn customers, who have been unable to access funds held in those accounts since late 2022, are one step closer to regaining access to their money.

NYDFS said Wednesday that it reserves the right to take further action against Gemini if ​​the company fails to meet its obligation to return at least $1.1 billion to customers following the resolution of Genesis’ bankruptcy.

Gemini has committed to contribute $40 million through the conclusion of Genesis’ bankruptcy to benefit Earn’s clients, the regulator said.

Gemini is led by Cameron and Tyler Winklevoss, also known as the Winklevoss twins, who gained national attention for their legal battle against Meta Platforms CEO Mark Zuckerberg. The company had previously sued DCG over the failure of their crypto lending joint venture.

The two companies partnered in December 2020 to allow Gemini customers the opportunity to lend their crypto assets to Genesis in exchange for earning interest and ultimately raising billions of dollars in crypto assets from investors.

NYDFS claimed that Gemini failed to monitor or perform due diligence on Genesis during the life of the Earn program and failed to maintain adequate reserves.

“Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn clients who were suddenly unable to access their assets after Genesis Global Capital experienced a financial crisis,” NYDFS Superintendent said , Adrienne Harris, in a statement.

“Today’s settlement is a victory for Earn’s clients, who are entitled to the assets they entrusted to Gemini.”

In a blog post, Gemini said it has “worked tirelessly over the past 15 months to defend Earn users and seek the return of their assets.”

‘Gemini thanks the New York Department of Financial Services (DFS) for its role in this agreement, which offers coin-for-coin recovery for Earn users.

Genesis will close after filing for bankruptcy in January 2023.

Gemini, run by the Winklevoss twins known for their legal battles with Meta founder Mark Zuckerberg, promoted Earn as “low risk” even though its internal analyzes had found Genesis to be in a risky financial situation, James alleged.

Genesis raised the funds in large loans to major players in the crypto space, including at one point a nearly $2 billion loan to Alameda Research, the hedge fund of disgraced FTX founder Sam Bankman-Fried.

James is seeking more than $3 billion in restitution for the more than 230,000 investors he believes were defrauded.

James is seeking more than $3 billion in restitution for the more than 230,000 investors he believes were defrauded.

James is seeking more than $3 billion in restitution for the more than 230,000 investors he believes were defrauded.

Although the Alameda loan was withdrawn before the FTX collapse shocked the crypto industry, James alleges that it was one of the risky, poorly secured loans that Gemini and Genesis hid from Earn investors.

Days after FTX imploded in November 2022, Genesis suspended withdrawals, owing at least $1 billion to more than 232,000 Earn investors, including at least 29,000 New Yorkers, according to the new lawsuit.

On Thursday night, he reached a settlement with James’ office, agreeing to pay his fraud claims as long as he pays clients in full through the Chapter 11 process. That agreement requires approval from a bankruptcy judge.

Genesis filed for bankruptcy two months after stopping Gemini Earn customer withdrawals following the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange.

Both Genesis and Gemini were also sued by the U.S. Securities and Exchange Commission, which said they skirted disclosure requirements meant to protect Gemini Earn customers.

Last week, Genesis agreed to pay the SEC a $21 million fine, also conditional on its customers paying first.

Meanwhile, Gemini has sued DCG over the failure of its crypto lending partnership.

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