Gemini to Pay Over $1.1 Billion to Clients in Agreement with NYDFS

Cryptocurrency Platform Gemini to Reimburse Clients Over $1.1 Billion

Cryptocurrency platform Gemini, owned by the Winklevoss brothers, has reached an agreement with the New York Department of Financial Services (NYDFS) to reimburse clients over $1.1 billion. This comes after issues with management, compliance, and internal audit were identified in the Gemini Earn program.

Refund Details

According to the agreement, around 200,000 users of the Gemini Earn program will receive a refund of their funds through the cryptocurrency exchange, fully in the form of their digital assets. However, the company must also pay $37 million to NYDFS for «significant failures» that posed a threat to security and reliability.

Legal Challenges

Despite the agreement, Gemini is still facing a lawsuit from the New York Attorney General, who has increased the lawsuit amount to $3 billion. Allegations include misrepresentation and concealment of losses involving the company, its affiliated entities, and partners.