A significant lawsuit involving cryptocurrency has recently been resolved, as reported by Gemini exchange agreeing to a $50 million settlement in a New York fraud case. New York Attorney General Letitia James revealed the state’s recovery of $50 million through a settlement with Gemini, with the funds set to be returned to Gemini Earn customers impacted by a multi-firm bankruptcy proceeding.
Gemini has also committed to assisting in a $3 billion fraud lawsuit against former partners Digital Currency Group (DCG), DCG founder Barry Silbert, and former Genesis chairman Soichiro “Michael” Moro. The initial lawsuit filed by New York in October accused Gemini of deceiving investors regarding its Gemini Earn product, which involved DCG and Genesis.
While the frozen funds of Earn customers have been returned, the ongoing conflict between Gemini founders Cameron and Tyler Winklevoss and DCG’s Silbert continues. The amended lawsuit in February alleges that the group defrauded investors of over $3 billion, with internal documents at Gemini suggesting awareness of the high risk posed by Genesis Capital.
Cameron Winklevoss has been vocal in criticizing their former partners, frequently expressing his displeasure through letters and calling for Silbert’s removal from DCG. It is important to note that this information does not constitute investment advice.
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