The New York State Attorney General’s Office has reached a settlement of approximately $50 million with the cryptocurrency exchange Gemini Trust Company, LLC (Gemini). This resolves a significant lawsuit involving the New York AG, Gemini, its former partner Genesis Global Capital, and other defendants.

Gemini has been banned from operating its crypto lending program following allegations related to its Earn initiative, which was run in collaboration with Genesis Global. Over 230,000 investors, including 29,000 New Yorkers, were affected by this program, which promised investment growth but allegedly misled investors and restricted access to their accounts.

After Genesis Global filed for bankruptcy in November 2022, the Gemini Earn program collapsed, leaving investors unable to access over $900 million of their assets.

In October 2023, the New York Attorney General filed a lawsuit against Gemini, Genesis, Digital Currency Group (DCG), DCG’s CEO Barry Silbert, and former Genesis CEO Saichiro Moro. In addition to Gemini's $50 million settlement, Genesis agreed to a $2 billion settlement, the largest ever for a cryptocurrency firm by a state. As part of the agreement, Gemini is prohibited from operating any crypto lending business in New York and is required to assist the New York AG in ongoing litigations against other defendants.

Commenting on the settlement, Attorney General Letitia James emphasized that it will compensate defrauded investors and serve as a reminder that deceiving investors is illegal in the cryptocurrency industry.

Letitia James has been notable for her aggressive stance in regulating the crypto space, initiating lawsuits against companies like KuCoin and Nexo, resulting in settlements totaling $22 million and $24 million, respectively.

In the broader crypto market, there has been a 1.05% decline in the past day, bringing the total market capitalization to approximately $2.4 trillion. Bitcoin remains the dominant digital asset with a market cap of $1.4 trillion, followed by Ethereum at $445.27 billion, constituting 18% of the crypto market.