Gemini Trust Company to Return $1.1 Billion to Customers in Settlement with NY Regulators
Superintendent Adrienne A. Harris of the New York State Department of Financial Services announced that Gemini Trust Company, LLC has committed to returning at least $1.1 billion to its Earn program customers through a bankruptcy proceeding. Gemini will also pay a $37 million penalty for compliance failures related to the program, which allowed customers to loan virtual currency to an unregulated third party. The company's failure to conduct due diligence on the third party led to significant financial harm for over 200,000 customers, and the Department's investigation also revealed unsafe and unsound practices within Gemini.