Gemini to return money
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div>As part of a settlement with regulators on Wednesday, the cryptocurrency company Gemini, owned by the Winklevoss twins, agreed to repay at least $1.1 billion to consumers of its failed “Earn” loan scheme and pay a $37 million fine for “significant” compliance violations.
The New York State Department of Financial Services claims that Gemini, which the twins started following their well-known argument with Mark Zuckerberg over who developed Facebook, neglected to “fully vet or sufficiently monitor” Genesis, Gemini Earn’s now-bankrupt lending partner.
What is the Earn Program?
The Earn program, which promised users up to 8% income on their cryptocurrency deposits, was canceled in November 2022 when Genesis was unable to pay withdrawals due to the fall of infamous scammer Sam Bankman-Fried’s FTX enterprise.
Since then, almost 30,000 residents of New York and over 200,000 other Earn users have lost access to their money.
Gemini “engaged in unsafe and unsound practices that ultimately threatened the financial health of the company,” according to the state regulator.
NYSDFS Superintendent Adrienne Harris claimed in a statement that “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 financi
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