Gemini, the crypto startup owned by the Winklevoss twins, must return $1.1 billion to customers who suffered losses from its partnership with bankrupt crypto financier Genesis.
In an agreement with the New York State Department of Financial Services, Gemini has agreed to return funds lost by customers of its Earn program, which allows users to lend their cryptocurrencies to Genesis in exchange for interest payments.
According to the Department of Financial Services, Gemini “did not undergo sufficient scrutiny or sufficient oversight.” [Genesis] The company then defaulted on its loans and subsequently went bankrupt, leaving about 200,000 Earn customers empty-handed.
DFS Superintendent Adrian A. Harris said in a statement: “Gemini failed to conduct due diligence on unregulated third parties, was later accused of massive fraud, and suddenly lost assets after the bankruptcy of Genesis Global Capital. This harmed Earn's customers who were unable to access the site.” . “Today’s settlement is a victory for Arn customers who have rights to the assets they entrust to Gemini.”
in TweetGemini said: “We are pleased to announce that we have finally reached an in-principle settlement with Genesis and other creditors in the Genesis Bankruptcy. If approved by the Bankruptcy Court, all Earn users will receive 100% of their digital assets. “I will receive it,'' he said. In kind. ”
DFS said Gemini will pay $40 million for Genesis' bankruptcy for the benefit of Arn customers, as well as a $37 million fine for “serious failures that jeopardize the safety and soundness of the company.” Ta.
Both Genesis and Gemini were indicted by the Securities and Exchange Commission last year on charges of offering and selling unregistered securities. Genesis settled half of the lawsuit for $21 million earlier this month.
There's no word on how all this will affect Winklevoss cover band Mars Junction.
