July 24, 2024
Latest Cryptocurrency News

NY Attorney General Letitia James Recovers $50M from Gemini

The New York Attorney General’s office announced the recovery of more than $50 million from Gemini, which will be returned to investors in the exchange’s Earn program. In a June 14 notice, Attorney General Letitia James stated that this amount settled a lawsuit filed in October 2023, which alleged that Gemini had defrauded 230,000 investors. This included New York residents, through its Earn program with Genesis Global Capital by failing to disclose risks.

Attorney General Letitia James emphasized that “hundreds of thousands of people” had their trust broken and money swindled by Gemini through its deceptive Earn program. Gemini had marketed this program as a safe way for investors to grow their money but instead locked investors out of their accounts and lied about the program’s risks.

Continuing Legal Actions

In May, James’ office announced a similar settlement with Genesis, requiring the firm to pay $2 billion to defrauded investors over Earn. The New York Attorney General clarified that these settlements applied only to Genesis and Gemini. The lawsuit would continue against Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro.

The settlement bans Gemini from operating any cryptocurrency lending program in New York state. James assured the public on X that everyone deceived by Gemini would get their money back. Gemini Trust stated that affected Earn users could expect “100% of the assets owed to them” within seven days.

Ongoing Efforts Against Crypto Fraud

Furthermore, Attorney General Letitia James’ office has been proactive against other crypto firms allegedly operating illegally in New York. In 2023, lawsuits were filed against former Celsius CEO Alex Mashinsky and KuCoin. Mashinsky faces criminal allegations in the Southern District of New York. He is expected to go to trial in January 2025.

Overall. these actions highlight the Attorney General’s commitment to protecting investors and enforcing regulations in the cryptocurrency market.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

German Government Sells 88.4% of Bitcoin Holdings

Bran Lopez

Founder of RenrenBit Sentenced to Seven Years in Landmark Crypto Case

Bran Lopez

Binance Revises Classification of Privacy Coins in Europe

Robert Paul

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.