New York Attorney General (NYAG) Letitia James has reached a $50 million settlement with Gemini Trust Company, LLC, benefitting over 230,000 investors, including at least 29,000 New Yorkers. This settlement addresses allegations that Gemini misled investors about the risks associated with the Gemini Earn program, an investment scheme offered alongside Genesis Global Capital.
Summary of Settlement
– Amount: $50 million
– Beneficiaries: Over 230,000 investors, including at least 29,000 New Yorkers
– Program: Gemini Earn
– Allegations: Misleading investors about risks
Offered alongside Genesis Global Capital, the program – Gemini Earn – allegedly misrepresented the risks, leading to significant investor losses.
Statements and Implications
Attorney General Letitia James highlighted the significance of the settlement, stating:
“Hundreds of thousands of people, including at least 29,000 New Yorkers, had their trust broken and their money swindled by Gemini through its bogus Earn program. This settlement will make defrauded investors whole and should remind cryptocurrency companies that deceiving investors is illegal and will not be tolerated by my office.”
Background and Legal Actions
In October 2023, Attorney General James sued Gemini for misleading investors about the risks of the Gemini Earn program. The lawsuit revealed that Gemini’s internal analyses indicated the financial instability of Genesis, information which was not disclosed to investors. Last month, Attorney General James secured $2 billion from Genesis for defrauded victims, further emphasizing the aggressive stance of the New York Attorney General’s office against fraudulent practices in the cryptocurrency industry.
Conclusion
The $50 million settlement between Gemini Trust Company and the New York Attorney General marks a significant step in addressing fraudulent practices within the cryptocurrency industry. It underscores the importance of regulatory oversight and the protection of investor interests, setting a precedent for future actions against deceptive investment schemes.
