A $37 million fine for “significant failures” will also be paid by the corporation.
The Earn program of Gemini was suspended in November 2022 due to a cryptocurrency crash.
Twins Tyler and Cameron Winklevoss, well-known for their legal battle with Facebook, co-founded the exchange.
“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,” Adrienne Harris, the superintendent of the NYDFS, said in it.
“Today’s settlement is a win for Earn customers, who have a right to the assets they entrusted to Gemini.”
In addition, the NYDFS threatened to take Gemini to court if the company failed to reimburse clients for at least $1.1 billion.
