Bitrabo Editorial
A significant settlement of about $50 million has been successfully negotiated by the New York State Attorney General’s Office with the cryptocurrency exchange Gemini Trust Company, LLC (Gemini). This development is part of a crucial legal dispute involving the New York AG, Gemini, its former partner Genesis Global Capital, and several other defendants.
Restrictions Placed on Gemini’s Crypto Lending Program
New York Attorney General Letitia James disclosed the attainment of the $50 million recovery from Gemini in a recent press release. The funds are designated to compensate victims who suffered financial losses through Gemini’s earn program. Over 230,000 investors, including 29,000 from New York, were misled into investing in Gemini’s Earn program operated in conjunction with the now-defunct crypto lender Genesis Global.
Following the collapse of the Gemini Earn program due to Genesis’ bankruptcy filings in November 2022, investors were unable to access more than $900 million of their assets. Subsequently, in October 2023, the New York AG filed a lawsuit against Gemini, Genesis, parent company Digital Currency Group (DCG), DCG’s CEO Barry Silbert, and former Genesis executive Saichiro Moro.
Alongside the recent payment by Gemini, the lawsuit also led to a $2 billion settlement with Genesis, the largest ever awarded to a cryptocurrency firm by a state. As part of the agreement, Gemini is barred from operating any crypto lending business in New York and is obliged to aid the New York AG in the ongoing legal actions against other defendants.
Commenting on the successful resolution, Letitia James emphasized the restoration of defrauded investors and underscored the illegality and intolerance of deceiving investors by cryptocurrency companies.
Attorney General Letitia James has actively pursued regulation in the cryptocurrency industry in recent years, initiating legal actions against various alleged defaulting crypto companies such as KuCoin and Nexo, resulting in settlements of $22 million and $24 million, respectively.
Cryptocurrency Market Update
In current market trends, the cryptocurrency market has exhibited a 1.05% decline in the last day, leading to a total market capitalization of approximately $2.4 trillion. Bitcoin remains the predominant digital asset with a market cap of $1.4 trillion, followed by Ethereum with a market cap of $445.27 billion, constituting 18% of the total crypto market.