The Gemini Trust has repaid its investors $50M as compensation for the fraud that has taken place under the Gemini Earn Program. The defrauded investors were done justice via the office of New York Attorney General Letitia James on 14th June 2024.
As per the statements, the Gemini Trust platform is run by the twin billionaires Cameron and Tyler Winklevoss who have now agreed to a state ban on running cryptocurrency lending schemes and will provide more than 230,000 Earn investors their entire returns, including 29,000 in New York.
“Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts.Today’s settlement will make defrauded investors whole.”, said James.
Gemini Earn Program – The Tea
- Gemini Earn promised high interest rates for lending crypto assets to Genesis Global Capital, a unit of Digital Currency Group, with Gemini charging agent fees potentially exceeding 4%.
- Investors’ funds were frozen when Genesis halted redemptions in November 2022, following the collapse of the FTX cryptocurrency exchange owned by Sam Bankman-Fried.
- Genesis Global Capital filed for Chapter 11 bankruptcy two months later.
- Recently, James secured a billion settlement related to the Genesis case, in addition to Friday’s payout.
- Gemini Earn defrauded investors are set to recover more than their initial investments, receiving payments in digital assets like bitcoin, which has significantly appreciated since the suspension of redemptions.
- Despite their dismissal of her claims as unfounded, Gemini Trust has committed to cooperating in James’ fraud lawsuit against Digital Currency Group and its CEO Barry Silbert.
- According to Forbes, the worth of twin brothers is $2.7B each.
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