Gemini, a digital currency exchange, and the New York State Department of Financial Services (NYDFS) reached an agreement last Wednesday, February 28th, after the latter charged the exchange owner with ignoring Genesis Global Capital, an affiliated company.
According to the proposal made, about 97% of the assets will be returned within two months in the case of practically all consumers, but the final agreement must be signed by the judge.
Genesis has included Gemini’s promise to pay $40 million as part of its bankruptcy proceedings, along with a $37 million penalty paid to the NYDFS.
The cases seek repayment of at least $1.1 billion for Gemini Earn Program customers whose assets were blocked after Genesis filed for bankruptcy in early 2023.
The previous year, NYAG filed complaints against Genesis, DCG, and Gemini, alleging that the three collaborated on “fraudulent schemes” involving the Gemini Earn program.
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