Gemini to Return $1.1B to Customers After Crypto Lending Collapse
-
Gemini, founded by the Winklevoss twins, will return $1.1B to customers of its failed "Earn" crypto lending program as part of a settlement.
-
Gemini failed to properly vet lending partner Genesis Global Capital, which collapsed amid the FTX downfall, leaving 200K Earn customers unable to access deposits.
-
Gemini will pay a $37M fine for compliance failures and "unsafe practices" in relation to the Earn program.
-
An unregulated Gemini affiliate collected hundreds of millions in fees from customers, weakening the company's finances.
-
The settlement requires Gemini to return 100% of assets to Earn users within 12 months and contribute $40M to Genesis' bankruptcy proceedings.