Posted 2/29/2024, 7:58:00 AM
Gemini to Fully Reimburse Customers $1.8B, Pay $37M Fine After Crypto Lending Collapse
- Gemini Trust will return over $1.1 billion to customers of its shuttered crypto lending program as part of a settlement with New York regulator
- Gemini will also pay a $37 million fine for "significant failures that threatened the safety and soundness of the company"
- Settlement means Gemini Earn customers will receive 100% of their digital assets back plus any appreciation in value, totaling over $1.8 billion
- Crypto market crumbled in 2022 due to FTX collapse; FTX founder Sam Bankman-Fried faces 5-6.5 years in prison for fraud
- Gemini still faces separate lawsuit accusing it, Genesis Global Capital, and Digital Currency Group of lying to investors and covering up over $1 billion in losses