Fun

Gemini to return at least $1.1B to Earn customers in settlement with NYDFS

News Feed - 2024-02-29 07:02:06

Brayden Lindrea1 hour agoGemini to return at least $1.1B to Earn customers in settlement with NYDFSGemini said that 97% of the assets should be recoverable within two months and the remaining asset balance within the next 12 months.387 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCryptocurrency exchange Gemini and New York State Department of Financial Services (NYDFS) have reached a settlement that will see Gemini return at least $1.1 billion to customers of the Gemini Earn Program through the Genesis bankruptcy proceeding.


Gemini will also pay a $37 million penalty for multiple compliance failures “that threatened the safety and soundness of the company,” Superintendent Adrienne A. Harris of the NYDFS explainedin a Feb. 28 statement.NEW: Superintendent Adrienne A. Harris Secures Commitment from Gemini Trust Company, LLC to Return at Least $1.1 Billion to Earn Program Customers

More Here: https://t.co/QHIxcTDTJD pic.twitter.com/Q2DFJmS8sH— NYDFS (@NYDFS) February 28, 2024


If approved by the bankruptcy court, Gemini said it expects Earn users toreceive 100% of their cryptocurrency assets back plus appreciation on top of that.


“If approved, we will be returning over $1.8 billion in value (at today’s prices) — $700 million more than when Genesis halted withdrawals on November 16, 2022.”


Approximately 97% of these assets should be recoverable within about two months, Gemini added.Earn Update: Today, we are pleased to announce that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in…— GeminiTrustCo (@GeminiTrustCo) February 28, 2024


As part of the agreement, Gemini agreed to contribute $40 million to the Genesis Global Capital (GGC) bankruptcy for the benefit of Earn customers, Harris revealed.


“Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown,” Harris said.“Today’s settlement is a win for Earn customers, who have a right to the assets they entrusted to Gemini.”


Harris noted the NYDFS could bring further action against Gemini if it fails to fulfill its obligations.


Related:Gemini approved to operate in France, will debut within weeks


Gemini launched the Earn program in February 2021, where Earn customers loaned their coins to GGC (which Harris noted wasn’t licensed by NYDFS).


GGC then loaned those same assets to its own counterparties, where Earn customers received interest payments. However, GGC went bankrupt in January 2023 and defaulted on approximately $1 billion worth of loans made by Earn customers.


NYDFS accused Gemini of not fully vetting or sufficiently monitoring GGC’s conduct throughout the life of Earn.


Magazine:Unstablecoins: Depegging, bank runs and other risks loom# Business# Gemini# Bankruptcy# Winklevoss Twins# Lending# Cameron WinklevossAdd reactionAdd reactionRead more

News Feed

Turner Wright4 hours agoFormer White House official will lead Ripple’s policy and government armRipple’s newest head of U.S. public policy previously worked in similar roles at Softbank Group, Zoom and Lyft following
Bamboozled: Gavin Andresen Says He Could Have Been Fooled by Craig Wright, BSV Supporters Speak Out
Bamboozled: Gavin Andresen Says He Could Have Been Fooled by Craig Wright, BSV Supporters Speak OutThis week a number of Kleiman v. Wright lawsuit depositions have recently publishe
Tesla CEO Elon Musk Reveals How He Will Improve Twitter if Bid Succeeds
Tesla CEO Elon Musk Reveals How He Will Improve Twitter if Bid Succeeds Tesla and Spacex CEO Elon Musk has revealed his priorities for improving Twitter if he successfully takes ov
Encryption Crackdown: Private Phone Network With 60,000 Users Dismantled by Law Enforcement
Encryption Crackdown: Private Phone Network With 60,000 Users Dismantled by Law EnforcementAn international law enforcement team has brought down an encrypted phone network with 60,
Brayden Lindrea8 hours agoElon Musk hits at SEC, DOJ amid suit to force testimony in Twitter probeElon Musk claims the SEC and DOJ are abusing their regulatory powers for personal and political gain to receive punitive a
XRP Price Macro Channel Breakout That Puts Targets At $17-$55
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Pakistanis Lose Millions to Crypto Scam, Pakistan Issues Notice to Binance
Pakistanis Lose Millions to Crypto Scam, Pakistan Issues Notice to Binance Investors from Pakistan have become victims of a massive fraud using cryptocurrency. The country’s
Ezra Reguerra9 hours agoDubai’s crypto regulator VARA switches leadership as it ramps up operationsOutgoing head Henson Orser will remain a consultant after Matthew White takes over as the new CEO of Dubai’s Virtual
Adobe Jumps Into Non-Fungible Token Ecosystem With ‘Prepare as NFT’ Photoshop Tool
Adobe Jumps Into Non-Fungible Token Ecosystem With "Prepare as NFT" Photoshop Tool Adobe Inc., the American multinational computer software company that’s well known for its
China Fines Bitmain $3.6 Million for Tax Violations, Report
China Fines Bitmain $3.6 Million for Tax Violations, Report Chinese authorities have fined leading crypto mining hardware manufacturer Bitmain for tax-related violations, local med
FTX’s $5.5 Billion in Alleged ‘Liquid Assets’ Includes Locked SOL Cache and Illiquid FTT Holdings
FTX"s $5.5 Billion in Alleged "Liquid Assets" Includes Locked SOL Cache and Illiquid FTT Holdings Two days ago, bankruptcy administrators and FTX debtors published an update for un
Opera Mini’s crypto wallet MiniPay now offers USDT and USDC
Helen Partz2 hours agoOpera Mini’s crypto wallet MiniPay now offers USDT and USDCSince launching in September 2023, Opera Mini’s MiniPay app has amassed three million users.3085 Total views14 Total sharesListen to ar