Gemini Settles with NY Regulator, Agrees to Return $1.1 Billion to Customers

Gemini, the crypto firm founded by the Winklevoss twins, has agreed to pay a $37 million fine and return over $1 billion to customers as part of a settlement with the New York Department of Financial Services related to its troubled Earn product. The agreement comes after lawsuits from New York’s attorney general and the Securities and Exchange Commission over the Earn program, which allowed customers to lend out cryptocurrencies for a yield of up to 13%. The program's sole counterparty, Genesis, experienced a financial meltdown, leaving more than 200,000 customers with over $1.7 billion in frozen assets. Gemini failed to conduct due diligence on Genesis and is accused of making misleading representations to customers, leading to significant regulatory action.