Gemini Exchange to Return $1.1 Billion to Customers in Regulatory Settlement
Gemini, founded by the Winklevoss twins, has agreed to return at least $1.1 billion to customers of its failed "Earn" lending program and pay a $37 million fine for compliance failures as part of a settlement with regulators. The program promised up to 8% interest on crypto deposits but collapsed when its lending partner, Genesis, faced financial troubles. The New York State Department of Financial Services found that Gemini failed to vet Genesis and engaged in unsafe practices, leading to over 200,000 customers being unable to access their funds. Gemini also faces lawsuits and regulatory scrutiny over the program's collapse.