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NYDFS fines Gemini $37M over compliance failures
By 
Jeff Dale2024-02-29T19:18:00
The New York State Department of Financial Services (NYDFS) fined cryptocurrency exchange Gemini Trust Company $37 million over alleged compliance failures related to lapses in safety and soundness.
As part of a settlement, Gemini committed to return at least $1.1 billion to customers of its “Earn” program through bankruptcy proceedings for Genesis Global Capital, the NYDFS announced in a press release Wednesday. Gemini will also contribute $40 million to the Genesis bankruptcy for the benefit of Earn customers.
In January 2023, the Securities and Exchange Commission charged Gemini and Genesis for failing to register their joint crypto lending product Earn. Months prior, the fallout from the collapse of crypto exchange FTX had a cascading effect on the industry and forced Genesis to lock customer accounts because of a lack of liquidity. It filed for bankruptcy shortly following the announcement of the SEC’s complaint.
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