NY AG Lends Investors a Hand in Recouping Cryptocurrency Lending Program Losses

  • New York AG Letitia James settled with cryptocurrency company Gemini Trust Company, LLC to resolve allegations that the company violated the Martin Act and New York Executive Law by engaging in fraudulent and deceptive conduct towards investors and the public.
  • According to the complaint, Gemini allegedly mispresented risks associated with certain investments and attempted to conceal more than $1 billion in losses from investors in its Gemini Earn program, through which investors could lend their cryptocurrencies to another cryptocurrency company, Genesis Global Capital, LLC.
  • Under the terms of the settlement, Gemini must provide approximately $50 million worth in restitution to investors, and permanently cease cryptocurrency lending in the state, among other relief.
  • We have previously reported on AG James’s enforcement actions against cryptocurrency companies, including a lawsuit against Nova Tech, Ltd and AWS Mining Pty Ltd.; a $22 million settlementwith KuCoin; and a $4.3 million settlement with Coin Cafe, Inc.