Gemini's Redemption: Returning $1.1 Billion to Customers Amidst Crypto Chaos

Gemini, the cryptocurrency exchange co-founded by Tyler and Cameron Winklevoss, has reached a settlement with the New York Department of Financial Services (NYDFS) to return at least $1.1 billion to customers of its defunct lending program, Gemini Earn. This agreement follows the program's suspension during a crypto market crash in November 2022 and entails a $37 million fine for "significant failures." The NYDFS accused Gemini of failing to conduct due diligence on an unregulated third party, which led to harm for Earn customers when Genesis Global Capital, Gemini's partner, experienced financial difficulties. As part of the settlement, Gemini also pledged to contribute $40 million towards concluding Genesis' bankruptcy proceedings. The exchange stated it had worked diligently over the past 15 months to advocate for Earn users' asset return, with the potential total value surpassing $1.8 billion. Gemini and Genesis faced charges in January 2023 from US regulators for allegedly selling crypto assets illegally through the Earn program, an ongoing case overseen by the US Securities and Exchange Commission.