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Gemini agrees to return $1.1bn to Earn customers

Gemini agrees to return $1.1bn to Earn customers

Gemini has agreed to return at least $1.1 billion to customers who lost money through the crypto firm's partnership with now-bankrupt Genesis.

Gemini - founded by Tyler and Cameron Winklevoss - made the commitment in a deal with the New York State Department of Financial Services that also sees the firm pay a $37 million fine.

The agreement relates to a failed partnership between Gemini and DCG unit Genesis on the former's Earn interest-bearing product. Last year, customer assets were frozen after Genesis halted withdrawals following the FTX collapse.

To date, over 200,000 Earn customers remain unable to access their virtual currency, worth at least $1.1 billion.

Superintendent Adrienne Harris says: "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."

In a blog, Gemini says Earn users can expect to receive approximately 97% of their assets in kind within about two months and the rest within a year.

Gemini will also contribute $40 million to Genesis' bankruptcy in order to benefit Earn customers.

In October, New York Attorney General Letitia James filed a lawsuit against Gemini and Genesis's parent over the Earn product, while the SEC has also charged both firms with offering and selling unregistered securities.

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