Gemini Earn’s Investors Compensation With $ 50 Million

The New York State Prosecutor General, Latitia James, announced that it has recovered $ 5 million from fraud in Gemini Earn’s Gemini Trust Currency Exchange platform for investor compensation.

According to the Ramsar Technical News Agency, Jamini, managed by the Cameroon billionaire and Tyler Winklesus, has agreed to bring the total funds to more than 2.5 Earn investors, including 3.5 people in New York. The company has also agreed to ban the implementation of digital currency lending programs in New York.

This recovered amount is separate from the $ 2 billion agreement, which James had previously signed in May with the Digital Global Capital Digital Currency Loan. The prosecutor general said: “Jamini has introduced the Earn program as a way to raise capital to customers, but it actually committed fraud by lying and blocking investor accounts. The resulting agreement will offset the full damage of investors. “

According to Jamini’s statement to investors on Friday, the recovered funds will be available within seven days. “With this final distribution, Earn users receive 5 % of their arrears,” the company said. The Gemini Earn program promised high interest rates to investors who borrowed digital assets such as Bitcoin to Genesis, Digital Currency Group. In the process, Jamini received fees that could exceed 5 %.

Following the collapse of the FTX digital currency exchange rate owned by Sam Bankman-Freed on November 7, the grade was stopped in Genesis and as a result, more than $ 5 billion of investors’ assets were blocked. Two months later, Genesis announced bankruptcy. Gemini has agreed to resolve the case, with no responsibility for the charges. It should be noted that New York’s senior financial regulator earlier in February was a fine of $ 5 million for Gemini due to failure to comply with the rules.

Given the significant increase in the value of digital assets such as Bitcoin since the suspension of the harvests, investors are expected to not suffer loss and even retrieve their initial investment, as repayment will be made with these assets. In addition, Jamini has agreed to collaborate in the October lawsuit against the Digital Currency Group and its CEO, Barry Silbert. However, the other side considers James’s claims baseless. Digital Currency Group spokesmen have not yet responded to requests for comment on the Gemini Agreement.