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Post: Gemini Agrees to Return $1.1 Billion to Customers: Settlement Details

Gemini Agrees to Return $1.1 Billion to Customers: Settlement Details

Key Points:

  • Gemini to return at least $1.1 billion to customers of the Gemini Earn Program.
  • Settlement with NYDFS includes a $37 million penalty for compliance failures.
  • 97% of assets should be recoverable within two months, and the rest within the next 12 months.
  • Potential for further action by NYDFS if Gemini does not meet its obligations.

Gemini Returns $1.1 Billion to Customers:

Gemini has agreed to return over $1.1 billion to customers of the Gemini Earn Program as part of a settlement with the NYDFS. This move follows a decision related to the Genesis bankruptcy proceeding.

$37 Million Penalty for Compliance Failures:

As part of the settlement, Gemini will pay a $37 million penalty due to multiple compliance failures that were deemed to jeopardize the company’s safety and soundness. This payment is a consequence of the shortcomings in meeting regulatory requirements.

Recovery Timeline for Assets:

Gemini has outlined a recovery timeline for assets, aiming to make 97% of the funds recoverable within two months and the remaining balance within the subsequent 12 months. This structured approach intends to facilitate the return of assets to affected customers efficiently.

Potential Further Actions by NYDFS:

Superintendent Adrienne A. Harris of NYDFS emphasized the possibility of additional actions against Gemini if the company fails to uphold its commitments outlined in the settlement. This warning underscores the importance of compliance and fulfilling regulatory responsibilities.

Hot Take:

The collaboration between Gemini and NYDFS demonstrates the significance of regulatory compliance within the cryptocurrency space. This settlement serves as a reminder to industry players about the consequences of compliance failures and the necessity of prioritizing customer protection and regulatory adherence. Moving forward, it is crucial for companies to maintain robust compliance measures to avoid penalties and protect their stakeholders.

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