Gemini Will Pay $1.1B to Earn Customers

Gemini Earn customers will now receive their full locked-up holdings, which could amount to over $1.1 billion, as part of a settlement with the New York Department of Financial Services (NYDFS).

Gemini will also pay Genesis $40 million for bankruptcy proceedings and $37 million to NYDFS. Gemini has committed to ensuring that customers receive their assets, as long as a bankruptcy court approves the agreement.

The product, which allowed customers to earn interest on cryptocurrency investments, used Genesis as a backend service.

The NYDFS investigation found that Gemini did not properly vet Genesis Global Capital, leading to losses for about 200,000 customers when Genesis defaulted on $1 billion in loans.

The investigation also revealed that Gemini engaged in unsafe practices that weakened its financial health, with its unregulated affiliate collecting large fees from customers.