Photo: Palo Alto Networks
Last Friday, New York Attorney General Letitia James disclosed that Gemini Trust has disbursed $50 million as restitution to investors who were deceived in its Gemini Earn initiative.
Cameron and Tyler Winklevoss, the billionaire twin brothers who founded Gemini, have consented to a state restriction on bitcoin loan schemes.
James announced a new phase with cryptocurrency lender Genesis Global Capital on May 20.
“Gemini promoted its Earn program as a means for investors to increase their funds, but in reality, it deceived them and restricted access to their accounts,” he stated. “The current agreement will fully compensate investors who have been deceived.”
On Friday, Gemini informed investors that the payment would be received within a period of seven days.
Through this ultimate allocation, Earn users will have obtained the entire amount of assets that are owed to them,” she stated.
Gemini Earn provided investors with attractive interest rates in exchange for lending bitcoin to Genesis, a corporation owned by Digital Currency Group, with fees reaching up to 4%.
Gemini reached a settlement without acknowledging any wrongdoing.
The leading financial regulator in New York fined Gemini $37 million in February for breaking rules.
Bitcoin, whose value has increased after redemptions were halted, provides compensation to investors, enabling them to recover more than their initial investment.
Digital Currency Group declined to provide a comment regarding Gemini’s settlement, despite multiple inquiries.
Forbes reports that each individual Winklevoss twin possesses a net worth of $2.7 billion.
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