The New York State Department of Financial Services (NYDFS) reached a settlement agreement with Winklevoss-owned crypto exchange Gemini.
The NYDFS announced the settlement in a press release published on Feb. 28. The regulator said that Gemini failed to protect its customers adequately and had multiple compliance issues.
Superintendent Adrienne Harris said:
“Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital experienced a financial meltdown.”
Settlement terms
The agreement mandates Gemini to return at least $1.1 billion to customers of its Earn Program following findings that the exchange failed to adequately oversee operations with Genesis, a third party implicated in the alleged fraud.
As part of the settlement, Gemini has also agreed to contribute $40 million towards the Genesis bankruptcy proceedings, which will benefit Earn Prog
We współpracy z: https://cryptoslate.com/gemini-agrees-to-return-1-1-billion-to-earn-customers-as-part-of-nydfs-settlement/
