All articles tagged with #nydfs
Ripple's RLUSD stablecoin has received approval from the New York State Department of Financial Services, allowing it to be listed on major exchanges soon. Initially announced in April and beta-tested on the XRP Ledger and Ethereum, the stablecoin is expected to contribute to the growing stablecoin market, which analysts predict could reach $3 trillion in four years.
Cryptocurrency exchange Gemini has agreed to pay back $1.1 billion to customers as part of a settlement with New York’s Department of Financial Services, following compliance and management issues related to its Earn program. The program allowed customers to loan their cryptocurrency to Genesis Global Capital, but when Genesis defaulted on loans, around 200,000 customers were unable to access their funds. Gemini has promised to return 100% of digital assets back to customers and faces a separate lawsuit alleging losses of $3 billion.
Cryptocurrency exchange Gemini has agreed to return at least $1.1bn to customers of its defunct lending programme as part of a settlement with the New York Department of Financial Services (NYDFS), following significant failures in its Earn programme. The company will also pay a $37m fine and contribute $40m to the conclusion of Genesis' bankruptcy. Gemini, co-founded by the Winklevoss twins, has been embroiled in extensive litigation with Genesis Global Capital, and the settlement brings customers one step closer to regaining access to their funds.
Gemini's former partner on its Earn program, Genesis Global Capital, filed for bankruptcy, leaving over $1.1 billion in locked-up holdings for Gemini Earn customers. As part of a settlement with the New York Department of Financial Services (NYDFS), Gemini has committed to returning 100% of the assets to its customers, with $40 million allocated for Genesis' bankruptcy proceedings and $37 million to NYDFS. The regulator alleged that Gemini did not conduct due diligence on Genesis, and NYDFS reserved the right to sue Gemini if the $1.1 billion is not returned after the resolution of Genesis' bankruptcy.
The New York Department of Financial Services (NYDFS) has adopted a new regulation for assessing costs associated with supervising crypto companies. The regulation requires companies to meet rigorous standards for capitalization, cybersecurity protection, and anti-money laundering protocols. Only companies with a state-issued BitLicense are subject to the regulation, of which only 22 companies have that license. The regulation aims to set the highest standards for safety, soundness, and consumer protection while fostering responsible growth in the virtual currency industry.
Former NYDFS superintendent Maria Vullo said that regulators did not shut down Signature Bank due to its crypto clients, but rather because of the bank's unreliable and inconsistent data, creating a crisis of confidence in its leadership. The bank may have also suffered from contagion risks following the closure of Silicon Valley Bank just days earlier. Regulators were able to quickly deal with both banks to send a strong message to the public that the system is safe and to prevent depositors from pulling out their money from other banks.