{"id":72510,"date":"2024-02-28T20:33:17","date_gmt":"2024-02-29T00:33:17","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=72510"},"modified":"2024-09-12T12:26:22","modified_gmt":"2024-09-12T16:26:22","slug":"gemini-agrees-to-1-1-billion-settlement-in-earn-program-dispute","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/gemini-agrees-to-1-1-billion-settlement-in-earn-program-dispute\/","title":{"rendered":"Gemini Agrees to $1.1 Billion Settlement in Earn Program Dispute"},"content":{"rendered":"\n

The agreement requires Gemini to pay a $37 million fine and also guarantees a return of more than $1.1 billion to the Customers.<\/a><\/p>\n\n\n\n

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Gemini Agrees to $1.1 Billion Settlement in Earn Program Dispute<\/figcaption><\/figure>\n\n\n\n

A settlement has been achieved between the New York State Department of Financial Services (NYDFS) \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>and the cryptocurrency exchange Gemini. Under the terms of the agreement, Gemini will reimburse customers of the Gemini Earn Program a minimum of $1.1 billion via the Genesis bankruptcy proceeding.\u00a0<\/p>\n\n\n\n

Additionally, for numerous compliance failures “that threatened the safety and soundness of the company,” Gemini will pay a $37 million fine, according to a statement released by NYDFS Superintendent Adrienne A. Harris on February 28<\/strong>. <\/p>\n\n\n\n

\u00a0<\/p>\n\n\n\n

NEW: Superintendent Adrienne A. Harris Secures Commitment from Gemini Trust Company, LLC to Return at Least $1.1 Billion to Earn Program Customers

More Here: https:\/\/t.co\/QHIxcTDTJD<\/use><\/svg><\/span><\/a> pic.twitter.com\/Q2DFJmS8sH<\/use><\/svg><\/span><\/a><\/p>— NYDFS (@NYDFS) February 28, 2024<\/use><\/svg><\/span><\/a><\/blockquote> \n\n\n\n

Gemini stated that, contingent on the bankruptcy court's approval, Earn users will receive a return of one hundred percent of their cryptocurrency<\/a> assets plus appreciation. <\/p>\n\n\n\n

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\u201cIf approved, we will be returning over $1.8 billion in value (at today\u2019s prices) \u2014 $700 million more than when Genesis halted withdrawals on November 16, 2022.\u201d\u00a0<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n\n\n\n

Gemini further stated that approximately 97% of these assets ought to be recoverable in roughly two months. <\/p>\n\n\n\n

Earn Update: Today, we are pleased to announce that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in\u2026<\/p>— GeminiTrustCo (@GeminiTrustCo) February 28, 2024<\/use><\/svg><\/span><\/a><\/blockquote> \n\n\n\n

Harris disclosed that Gemini, by the agreement, would make a $40 million contribution to the Genesis Global Capital (GGC) insolvency to assist Earn customers. <\/p>\n\n\n\n

Harris stated, \u201cGemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown,\u201d<\/p>\n\n\n\n

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\u201cToday\u2019s settlement is a win for Earn customers, who have a right to the assets they entrusted to Gemini.\u201d<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n\n\n\n

Harris noted that if Gemini fails to meet its obligations, the NYDFS may pursue additional legal action.\u00a0Gemini<\/use><\/svg><\/span><\/a> introduced the Earn program in February 2021, through which Earn participants lent their coins to GGC, an entity that Harris noted lacked a license from the NYDFS.\u00a0<\/p>\n\n\n\n

Those assets were subsequently lent by GGC to its counterparties, for which Earn clients received interest payments. However, GGC declared bankruptcy in January 2023 and defaulted on loans owed by Earn customers of approximately $1 billion. <\/p>\n\n\n\n

Throughout Earn, NYDFS accused Gemini of adequately vetting or monitoring GGC's conduct.<\/p>\n","protected":false},"excerpt":{"rendered":"

The agreement requires Gemini to pay a $37 million fine and also guarantees a return of more than $1.1 billion to the Customers. A settlement has been achieved between the New York State Department of Financial Services (NYDFS) and the cryptocurrency exchange Gemini. Under the terms of the agreement, Gemini will reimburse customers of the […]<\/p>\n","protected":false},"author":53,"featured_media":72512,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5495,5644,5392,7600],"class_list":["post-72510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-2","tag-crypto-com-2","tag-cryptocurrency-2","tag-gemini-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/02\/gem.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/72510","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\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=72510"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/72510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/72512"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=72510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=72510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=72510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}