Gemini Earn News

Defunct crypto lender Genesis distributed $2.18b worth of crypto to 232,000 users enrolled in Gemini Earn, an interest-accruing lending program. The distribution followed a New York bankruptcy judge approving the Chapter 11 plan last week.

A bankruptcy court judge has approved a plan by the cryptocurrency lender Genesis Global to return about $3 billion to its creditors and investors, including thousands of people who New York regulators say were defrauded by the company

Judge Sean Lane greenlit Genesis Global’s Chapter 11 plan on Friday, allowing the defunct crypto lender to repay creditors roughly $3b in crypto and cash.

Digital Currency Group (DCG), parent firm of bankrupt crypto lender Genesis, has brought on its first-ever chief legal officer as it faces a lawsuit from New York’s Attorney General.

The SEC charged Gemini and Genesis’ crypto asset lending program, Gemini Earn, in January 2023.

Bankrupt cryptocurrency lender Genesis Global Capital has agreed to pay a $21 million fine as part of a final court judgement to settle charges with the U.S. Securities and Exchange Commission (SEC).

Digital Currency Group (DCG), the parent company of the now-defunct cryptocurrency lending platform Genesis Global Capital, has taken action to dismiss the lawsuit filed against it by New York Attorney General Letitia James.

New York Attorney General Letitia James has escalated the state’s legal action against Digital Currency Group (DCG), tripling the estimated size of the alleged fraud to over $3 billion. This development follows a prolonged investigation by James’s office, which uncovered additional investors defrauded of $2 billion in assets, as disclosed in a statement released on Friday. The lawsuit centers on a cryptocurrency lending program known as Gemini Earn.

The Federal Deposit Insurance Corporation (FDIC) has recently implemented a new rule governing the use of its official signs and advertising, potentially influencing public perception of certain crypto firms. 

Better Market CEO lambasts frequent market abuses and false advertising strategies of digital asset firms as a major reason for the Federal Deposit Insurance Corporation’s (FDIC) rule change to protect investors.

By Dietrich Knauth

Letitia James on Thursday sued cryptocurrency firms Genesis Global, its parent company Digital Currency Group (DCG) and Gemini for allegedly «defrauding» investors of more than $1 billion. The development underscores the challenges the crypto industry continues to face almost a year after the bankruptcy of Sam Bankman-Fried's exchange FTX, which led to a meltdown in the sector that overwhelmed several major firms.

The suit relates to a failed partnership between Gemini and DCG unit Genesis on the former's Earn interest-bearing product. Last year, customer assets were frozen after Genesis halted withdrawals following the FTX collapse. The suit alleges that Gemini lied to investors about Earn, repeatedly assuring customers that investing with Genesis through the programme was low-risk investment despite the fact that its own internal analyses showed that the company’s financials were risky.

(Reuters) -New York Attorney General Letitia James on Thursday sued cryptocurrency firms Genesis Global and its parent company, Digital Currency Group (DCG), as well as Gemini for allegedly «defrauding» investors of more than $1 billion.

Digital Currency Group has reached a preliminary agreement with Genesis creditors to settle the claims by reimbursing 70-90% in USD equivalent to unsecured creditors.

Gemini, a cryptocurrency exchange, and Genesis Global Capital, a bankrupt cryptocurrency lender, have filed a petition to dismiss the SEC action linked to their joint venture product, Gemini Earn.

Crypto exchange Gemini, owned by the Winklevoss twins, is headed to the United Arab Emirates.

Taylor and Cameron Winklevoss, the billionaire twins behind the US-based crypto exchange Gemini, have dipped into their personal savings to support their company amidst strong headwinds.

As more and more crypto companies face scrutiny – and some throw in the towel after a rough bear market - questions are being raised whether that could be a good thing for crypto after all.

The monumental collapse of FTX didn’t just destroy a crypto exchange and wipe out billions in customer deposits — it also exposed accounting irregularities at Barry Silbert’s empire, the Digital Currency Group, or DCG. That’s according to Bitcoin (BTC) billionaire and Gemini co-founder Cameron Winklevoss. The FTX blow-up caused Genesis Global Trading, another DCG firm, to pause new loan originations and redemptions — a decision that directly affected Winklevoss’ Gemini Earn program. The pause on withdrawals has been active for nearly two months, prompting Winklevoss to pen two open letters addressed to Silbert and DCG’s board. The second open letter, published this week, claimed that Silbert was “unfit” to run DCG and that there would be no way forward with him at the helm.

The SEC’s filed complaint alleges that Gemini and Genesis’ crypto asset lending program, Gemini Earn, facilitated the offer and sale of unregistered securities to retail investors, allowing both firms to raise billions of dollars’ worth of crypto assets. The enforcement action outlines how the crypto asset-lending scheme allowed its customers to tender their crypto tokens to Genesis in exchange for an attractive interest rate. Gemini charged agent fees on these transactions (up to 4.29%). In November 2022, Genesis announced it would not allow Gemini Earn customers to withdraw their crypto assets as it lacked sufficient liquidity to meet withdrawal requests. At the time of this statement Genesis held approximately $900 million in investor assets from over 300,000 Gemini Earn investors. Genesis’ parent company Digital Currency Group (DCG) is considering selling assets to raise money to pay off the more than $3 billion it owes to creditors. Earlier this month, Gemini ended the Gemini Earn program, with retail investors still unable to withdraw their assets. Tyler Winklevoss, Gemini CEO, took to Twitter to respond to the SEC’s Thursday filing, stating: "It’s disappointing that the @SECGov chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive […] It’s disappointing that the @SECGov chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive.”