The New York Attorney General, Letitia James, has reached a $50 million settlement with crypto exchange Gemini following fraud allegations. According to a recent press release, James has recovered $50 million in digital assets on behalf of 230,000 investors who were allegedly defrauded through Gemini’s Earn program. This program, which involved a partnership with crypto lender Genesis to provide staking rewards, led to financial losses for investors when Genesis went bankrupt in 2022, leaving Gemini unable to fulfill its obligations.

An investigation launched by James in 2023 revealed that Gemini was aware of the risks associated with Genesis’ loans, including being under-secured and highly concentrated with one entity, yet failed to disclose this crucial information to investors. James stated, “Hundreds of thousands of people, including at least 29,000 New Yorkers, were deceived and swindled by Gemini through its fraudulent Earn program. Today’s settlement aims to compensate the affected investors and serves as a warning to cryptocurrency companies that fraudulent practices will not be tolerated.”

Gemini took to social media platform X to confirm the settlement and assure customers that they would receive 100% of the crypto assets owed to them. In a statement, Gemini announced, “We are pleased to announce that the final Earn distributions, representing the remaining 3% of digital assets owed to you as of the suspension date, will be available in your Gemini account within seven days. This completes the full restitution of assets owed to Earn users.”

In a separate development, Genesis recently reached a $2 billion settlement with James, marking the largest crypto settlement in the state’s history. The resolution of these cases underscores the importance of transparency and accountability in the cryptocurrency industry.

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