Gemini to Pay $37 Million Fine and Return $1.1 Billion to Customers in Settlement ⏎💰

Cryptocurrency exchange Gemini has reached a settlement with the New York Department of Financial Services (NYDFS), agreeing to return at least $1.1 billion to customers of its defunct lending program, Gemini Earn, and pay a $37 million fine for unsafe and unsound practices. The Earn program, operated in partnership with crypto lender Genesis Global Capital, was halted during a crypto market crash in November 2022, leading to Genesis filing for bankruptcy and ensuing litigation between Genesis, Gemini, and Genesis’s parent company, Digital Currency Group (DCG). The settlement brings Gemini’s Earn customers closer to regaining access to their funds, with the NYDFS retaining the right to take further action if Gemini fails to fulfill its obligations following Genesis’ bankruptcy resolution. Gemini has committed to contributing $40 million to conclude Genesis’ bankruptcy proceedings. The Winklevoss twins, Cameron and Tyler, run Gemini.