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General Category => General Discussion => Topic started by: Saifere on February 10, 2024, 05:00:47 PM
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Gemini platform recovers from crypto crisis Set to refund $1.1 billion to customers
Gemini, owned by Winklevoss twins Tyler and Cameron Winklevoss, has announced that it has agreed to return at least $1.1 billion to customers of its Gemini Earn program. Genesis bankruptcy proceedings after the New York State Department of Financial Services (NYDFS) reached an agreement to return Gemini funds
Gemini is a major US cryptocurrency trading platform. is one of those affected by Crypto Domino Effect Because it is a creditor of Genesis Global Capital, a digital asset lending company affiliated with Digital Currency Group (DCG), it has recently announced its filing for bankruptcy protection. and becomes the first domino of 2023
Gemini has agreed to return at least $1.1 billion, or around £870 million, to customers of the defunct lending scheme. This is part of an agreement with the New York Department of Financial Services (NYDFS).
Along with Gemini, it will pay a $37 million fine for multiple compliance failures. “This poses a threat to the safety and security of the company,” NYDFS' Adrienne A. Harris explained in a Feb. 28 statement.
If approved by the bankruptcy court, Gemini said it expects investors in the Earn program to receive 100% of their digital assets back.
“If this project is approved We will refund more than $1.8 billion. (based on current digital asset prices) which is now $700 million more expensive than when Genesis stopped withdrawals on November 16, 2022, and approximately 97% of these assets It should be able to recover in about two months.”
Gemini launched the Earn program in February 2021, targeting an Annual Percentage Yield (APY) of 7.4%.
And its Gemini Trust Earn product has attracted investors with the potential to return holders up to 8%. But in mid-November, Tyler and Cameron Winklevoss abruptly halted the redemp after Genesis Global, its lead partner, Gemini affected by FTX collapse
Soon Gemini Trust Co. and its twin founders Investors were sued on the allegation that The trading board has launched the Earn Interest account program without being registered as a security.
According to the investor complaint, “Gemini marketed GIA with false statements. and repeatedly misled investors that GIAs were a safe way to save interest.” The company ended the program on November 16 after FTX filed for bankruptcy protection. “And it refuses to grant investors the right to redemption of their principal and deletes all investor accounts that still hold principal in the Earn program.”