NY AG Lends Investors a Hand in Recouping Cryptocurrency Lending Program Losses

Cozen O'Connor
Contact
LinkedIn
Facebook
X
Send
Embed

Cozen O'Connor

  • New York AG Letitia James settled with cryptocurrency company Gemini Trust Company, LLC to resolve allegations that the company violated the Martin Act and New York Executive Law by engaging in fraudulent and deceptive conduct towards investors and the public.
  • According to the complaint, Gemini allegedly mispresented risks associated with certain investments and attempted to conceal more than $1 billion in losses from investors in its Gemini Earn program, through which investors could lend their cryptocurrencies to another cryptocurrency company, Genesis Global Capital, LLC.
  • Under the terms of the settlement, Gemini must provide approximately $50 million worth in restitution to investors, and permanently cease cryptocurrency lending in the state, among other relief.
  • We have previously reported on AG James’s enforcement actions against cryptocurrency companies, including a lawsuit against Nova Tech, Ltd and AWS Mining Pty Ltd.; a $22 million settlementwith KuCoin; and a $4.3 million settlement with Coin Cafe, Inc.
Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Written by:

Cozen O'Connor
Cozen O'Connor
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign Up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide