Cryptocurrency company Gemini should return more than one billion dollars to customers

Gemini, a cryptocurrency platform owned by the Winklevoss brothers, has entered into an agreement with the New York Department of Financial Services (NYDFS) to reimburse customers for more than $1.1 billion. This was due to governance, compliance, and internal audit issues with the Gemini Earn programme.

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The agreement stipulates that about 200,000 Gemini Earn users will receive a refund of their funds invested in this programme through a cryptocurrency exchange. They should receive 100% of their digital assets.

However, the value of these assets is already estimated at $1.8 billion, so the company will also have to pay $37 million to the NYDFS for "significant failures" that posed a threat to security and reliability.

Superintendent Adrienne A. Harris: "#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..."

- NYDFS (@NYDFS) 28 February 2024

Despite the agreement, Gemini remains under attack from a lawsuit filed by the New York Attorney General. The lawsuit has been expanded to $3 billion, accusing the company, its affiliates, and partners of misrepresentation and concealment of losses.

Source: The Verge