Gemini Trust Company, LLC, a cryptocurrency exchange, has agreed to pay $50 million to settle claims made by the New York Attorney General's Office, marking a significant development in the ongoing legal battle involving Gemini, its former partner Genesis Global Capital, and other defendants.

The settlement, announced by New York Attorney General Letitia James, aims to compensate over 230,000 investors, including 29,000 New Yorkers, who were allegedly defrauded through Gemini's Earn program. This program, offered in collaboration with Genesis, promised investors a low-risk investment opportunity but ultimately resulted in significant financial losses when Genesis filed for bankruptcy in 2022.

Gemini's Earn program was marketed as a means for investors to grow their money, but it allegedly misrepresented the risks involved. Despite knowing that Genesis' financials were risky, Gemini failed to disclose this information to investors. As a result, investors were locked out of their accounts and unable to withdraw their assets when the program collapsed.

The settlement requires Gemini to return approximately $50 million worth of digital assets to the affected investors. This amount will be distributed directly to the investors' accounts, ensuring they can access their digital assets without taking additional action.

In addition to the financial settlement, Gemini is banned from operating any cryptocurrency lending programs in New York. The company must also cooperate with the Office of the Attorney General's ongoing litigation against Digital Currency Group, its CEO Barry Silbert, and Genesis' former CEO Soichiro Moro.

This settlement follows a $2 billion settlement secured by Attorney General James from Genesis last month, which also aimed to reimburse Gemini Earn users. The combined settlements will provide full recovery of the assets invested in the Earn program, making defrauded investors whole.

Attorney General James has been a nationwide leader in efforts to protect investors and regulate the cryptocurrency industry. The settlement serves as a reminder that deceiving investors is illegal and will not be tolerated.