On the 28th of Feb last Wednesday, Gemini, a digital currency exchange, signed an agreement with the New York State Department of Financial Services (NYDFS), after the latter alleged the exchange owner had been negligent while overlooking its linked firm – Genesis Global Capital.
Genesis has included Gemini’s agreement to pay $40 million to its bankruptcy proceedings with a penalty of $37 million paid to the NYDFS.
The goal of the suits is to demand restitution of at least $1.1 billion for Gemini Earn Program users whose assets were frozen after Genesis had applied for bankruptcy in early 2023.
Under the proposal submitted, it is expected to obtain about 97% of the assets returned within two months in the case of almost all the customers, but the final deal about it should be concluded by the judge.
The previous year, NYAG filed lawsuits against Genesis, DCG, and Gemini, claiming that the three had coordinated on “fraudulent schemes” about the Gemini Earn program.
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