The New York Attorney General’s (NYAG) office announced on June 14 that it has completed a settlement with Gemini, recovering $50 million for users of the now-defunct Gemini Earn program.

Users will automatically receive the crypto in their accounts without needing to take any further steps.

The settlement resolves the NYAG's legal charges against Gemini and prohibits the exchange from operating crypto lending programs in New York. It also mandates Gemini's cooperation in the NYAG’s investigations of Digital Currency Group (DCG), DCG CEO Barry Silbert, and former Genesis CEO Soichiro Moro.

The NYAG alleged that Gemini misled thousands of investors about the risks associated with the Gemini Earn program offered with Genesis Global Capital, affecting over 230,000 users, including at least 29,000 New York residents.

New York Attorney General Letitia James stated:

“Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts.”

Final distribution within a week

On the same day, Gemini confirmed the settlement and announced that it would make the final distribution of funds to users within seven days. This will return the remaining 3% of crypto owed to users when the Earn program was suspended.

Gemini also confirmed the conclusion of the NYAG’s lawsuit, stating:

“We are also pleased to announce that Gemini has entered into an agreement with the New York Attorney General to settle the lawsuit brought against us on October 19, 2023.”

On May 29, Gemini returned over $2 billion in crypto to customer accounts, completing 97% of the funds owed. The distributions were made in-kind, so users who lent one Bitcoin to the program received one Bitcoin back.