Gemini to return $1.1 bln to customers, pay fine in regulatory settlement

By Jerry  Published On February 29, 2024
Feb 28 (Reuters) – Cryptocurrency exchange Gemini will return at least $1.1 billion to customers of its defunct lending program and pay a fine of $37 million for unsafe and unsound practices as part of a settlement with the New York Department of Financial Services (NYDFS), the regulator said on Wednesday.
Gemini’s Earn program, which was offered in partnership with crypto lender Genesis Global Capital, was halted during a crypto market crash in November 2022. That dislocation caused Genesis to file for bankruptcy, and has led to extensive litigation between Genesis, Gemini and Genesis’s parent company, Digital Currency Group (DCG).
The agreement means Gemini’s Earn customers, who have not been able to access the funds held in those accounts since late 2022, are one step closer to regaining access to their money.
NYDFS said on Wednesday that it retains the right to bring further action against Gemini if the company does not fulfill its obligation to return at least $1.1 billion to customers following the resolution of Genesis’ bankruptcy. Gemini has pledged to contribute $40 million to the conclusion of Genesis’ bankruptcy in order to benefit Earn customers, the regulator said.

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