By Jonathan StempelNEW YORK (Reuters) – New York Attorney General Letitia James said on Friday her office has recovered $50 million from the cryptocurrency platform Gemini Trust to repay investors defrauded in its Gemini Earn program. James said Gemini, run by billionaire twin brothers Cameron and Tyler Winklevoss, will provide full recoveries to more than 230,000 Earn investors, including 29,000 in New York, and agreed to a ban on operating crypto lending programs in the state. “Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts,” James said. “Today’s settlement will make defrauded investors whole.”Gemini Earn promised high interest rates to investors who lent crypto assets such as bitcoin to crypto lender Genesis Global Capital, a unit of Digital Currency Group, with Gemini taking agent fees that could exceed 4%. Gemini has said Gemini Earn investors will recover more than they invested because they will be paid in digital assets such as bitcoin, whose value has more than tripled since redemptions were suspended.

Source: Forbes June 14, 2024 17:04 UTC