Gemini will pay USD $50 million after agreement with the New York Attorney General’s Office – DiarioBitcoin

The agreement reached with Gemini with NYAG involves the payment of USD $50 million in cryptocurrencies for those affected by the program Gemini Earn, this to compensate for assets that were excluded from their accounts.

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• Gemini reaches agreement with the New York Attorney’s Office
• Will pay USD $50 million in cryptocurrencies directed to victims
• With this, they resolve part of the legal disputes related to Gemini Earn
• Outside of this, the exchange will finish paying USD $2.18 billion in cryptocurrencies to those affected

The US-based international exchange run by the Winklevoss brothers, Gemini, reached an agreement with the New York Attorney General’s Office because of what happened with the program Gemini Earn, and agreed to pay compensation of USD $50 million to resolve certain aspects related to those affected.

Gemini reaches millionaire agreement with NYAG

According to information published by the New York Attorney General (NYAG)Letitia James, the adjustment occurs because Gemini He allegedly deceived thousands of investors from his profit program, including New York City residents. According to him, the exchange did not properly inform about the risks linked to the investment made, since those who participated lent their cryptocurrencies and would supposedly earn returns of up to 7.4% annually.

In this regard, James indicated:

Gemini marketed its Earn program as a way for investors to grow their money, but it actually lied and locked investors out of their accounts. Today’s settlement will compensate defrauded investors and should remind cryptocurrency companies that misleading investors is illegal and will not be tolerated by my office.

As such, the prosecution filed charges against Gemini and Genesis in October of last year, ensuring that both entities committed crimes contemplated in state laws. As such, he points out that they lied by claiming that the program was low risk, which was evident after what happened.

He also alleged that the crypto lending company, run by Digital Currency Groupconcealed around $1.1 billion in losses with misstatements, omissions, and altered reporting.

In relation to the agreed amount, the report reads:

Under today’s agreement, Gemini will return approximately $50 million in digital assets to Gemini Earn investors who were locked out of their accounts. Investors do not need to take any action to recover their digital assets and will be able to access their digital assets in their accounts.

Compensation for victims is lacking

Although the agreement reached with the NYAG by Gemini addresses the legal perspective of the matter, the exchange has yet to define how it will carry out the compensation plan for affected people.

According to reports published last month, the Winklevoss brothers indicated that they would pay a total of USD $2.18 billion in cryptocurrencies to users of the program. Earn, Therefore, they guaranteed that clients would receive the equivalent in crypto of what they had for the loans.

In a statement published last week by Gemini, The exchange indicated that the final distributions for users of Gemini Earn They will be transferred in the coming days through their respective accounts.

Let us keep in mind that in addition to the agreement with NYAG, Gemini also agreed months ago to pay a fine of USD $32 million to the New York Department of Financial Services (NYDFS) for violations of current laws after what happened with the program Earn.

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, under free use license

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.