New York Attorney General Letitia James has secured a $50 million recovery from Gemini Trust, aimed at compensating investors affected by the Gemini Earn program’s alleged fraud.
Gemini Trust, operated by Cameron and Tyler Winklevoss, has agreed to provide full repayment to more than 230,000 investors, including 29,000 in New York State.
The Gemini Earn programme, known for promising high interest rates, faced allegations of locking investors out of their accounts.
The recovered funds, previously inaccessible, will be distributed within seven days, offering relief to affected parties.
This recovery marks a notable step in ongoing legal actions against crypto lending platforms. Gemini has also committed to ceasing its crypto lending operations in New York State as part of the settlement.
Earlier this year, the company was fined $37 million by New York’s financial regulator for compliance shortcomings.
The $50 million recovery supplements a broader $2 billion settlement linked to Genesis Global Capital, reinforcing efforts to address investor losses stemming from the collapse of FTX and subsequent bankruptcy filings by Genesis.
Investors are expected to recoup more than their initial investments, bolstered by the increased value of digital assets like bitcoin.
Furthermore, Gemini has pledged cooperation in a fraud lawsuit involving Digital Currency Group and its CEO, Barry Silbert.
Despite legal challenges, Cameron and Tyler Winklevoss, the founders of Gemini, each maintain a net worth of $2.7 billion, as reported by Forbes.
