US cryptocurrency company Gemini reached a settlement with the authorities for not fulfilling its legal obligations.
According to the statement made by the New York Department of Financial Services (NYDFS), Gemini Gemini Earn program to its customers at least $1.1 billion refund will make.
Gemini, founded by the Winklevoss twins, launched the Gemini Earn program. launched in 2021. The program was established for users to earn returns on their crypto deposits.
Gemini debits deposits received from users. Genesis Global Capital, which later went bankrupt gave it to his company.
An NYDFS official said, “Gemini failed to adequately investigate an unregulated third party who was subsequently accused of massive fraud; Genesis Global Capital It harmed Earn customers who were unable to access their money after experiencing a financial meltdown.” said.
NYDFS claims Gemini is providing services to Earn customers as part of Genesis’ ongoing bankruptcy proceedings. $1.1 billion refund If it does not do so, it may impose different sanctions against the company.
Gemini is also required to proceed with the bankruptcy process. 40 million dollars will pay.
Gemini management will notify customers if the settlement terms are approved by the court. full payment will be made explained.