{"id":44710,"date":"2023-02-01T18:08:39","date_gmt":"2023-02-01T22:08:39","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=44710"},"modified":"2023-02-01T18:08:42","modified_gmt":"2023-02-01T22:08:42","slug":"gemini-under-investigation-over-fdic-accusations","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/gemini-under-investigation-over-fdic-accusations\/","title":{"rendered":"Gemini Under Investigation Over FDIC Accusations"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"h-the-new-york-department-of-financial-services-nydfs-is-investigating-crypto-exchange-gemini-over-claims-over-its-claims-related-to-fdic\">The <a href=\"https:\/\/coinscreed.com\/staging\/ftx-us-applies-for-trust-charter-from-new-yorks-financial-regulator.html\" target=\"_blank\" rel=\"noreferrer noopener\">New York Department of Financial Services<\/a> (NYDFS) is investigating crypto exchange Gemini over claims over its claims related to FDIC.<\/h5>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-1024x576.jpg\" alt=\"Gemini Under Investigation Over FDIC Accusations\" class=\"wp-image-44712\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-1024x576.jpg 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-300x169.jpg 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-768x432.jpg 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-150x84.jpg 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-750x422.jpg 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553-1140x641.jpg 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Gemini Under Investigation Over FDIC Accusations<\/figcaption><\/figure>\n\n\n\n<p>Users of <a href=\"https:\/\/coinscreed.com\/staging\/tether-confirms-zero-exposure-to-genesis-global-or-gemini-earn.html\" target=\"_blank\" rel=\"noreferrer noopener\">Gemini Earn <\/a>are due a total of $765.9 million by the insolvent Genesis. Some of these users contend that the crypto firm misled them because they thought their funds were insured by the FDIC.<\/p>\n\n\n\n<p>The crypto exchange allegedly claimed in communications to users that the Gemini Dollar (GUSD) stablecoin was supported by bank cash deposits that qualified for FDIC insurance.<\/p>\n\n\n\n<p> Users complained in the report that Gemini's marketing and communications did not make it apparent that its own products, like Earn, were not covered by the FDIC.<\/p>\n\n\n\n<p>The study concluded that while some users believed Gemini Earn itself was FDIC-insured, others thought the crypto exchange's statements regarding FDIC coverage were &#8220;quite plainly false.&#8221;<\/p>\n\n\n\n<p>While Gemini's contacts involving FDIC insurance were &#8220;skeezy,&#8221; Todd Phillips, a former <a href=\"https:\/\/www.google.com\/search?q=Gemini+Under+Investigation+Over+FDIC+Accusations&client=opera&ei=0dvaY57mNsu49u8PgYSjiA0&ved=0ahUKEwjekr6lpPX8AhVLnP0HHQHCCNEQ4dUDCA4&uact=5&oq=Gemini+Under+Investigation+Over+FDIC+Accusations&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAzIFCCEQoAEyBQghEKABOhMIABCPARDqAhC0AhCMAxDlAhgBSgQIQRgASgQIRhgAUMwMWMwMYMESaAJwAHgAgAGiBIgBogSSAQM1LTGYAQCgAQGgAQKwAQrAAQHaAQQIARgK&sclient=gws-wiz-serp\" target=\"_blank\" rel=\"noreferrer noopener\">senior counsel at the FDIC<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>, told Axios that he was unsure if they were actually unlawful. <\/p>\n\n\n\n<p>Businesses are not allowed to intentionally misrepresent the scope of FDIC coverage under federal law. The FDIC and other authorities warned banks that misrepresenting the FDIC's insurance coverage by cryptocurrency companies posed a significant risk to conventional financial institutions.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/coinscreed.com\/staging\/philippines-sec-seeks-to-toughen-regulations-on-crypto-industry.html\" target=\"_blank\" rel=\"noreferrer noopener\">Securities and Exchange Commission<\/a> levied fines against Genesis and Gemini earlier this month for unregistered securities offers made through the Earn program.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The New York Department of Financial Services (NYDFS) is investigating crypto exchange Gemini over claims over its claims related to FDIC. Users of Gemini Earn are due a total of $765.9 million by the insolvent Genesis. Some of these users contend that the crypto firm misled them because they thought their funds were insured by [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":44712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[],"class_list":["post-44710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/02\/croc_1675109187553.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/44710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=44710"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/44710\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/44712"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=44710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=44710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=44710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}