Gemini Will Restore IDR 17.2 Trillion To Crypto Loan Program Customers

Cameron and Tyler Wolvoss - also known as theluyvoss Twin (photo: x @novogratz ·).

JAKARTA - Gemini's crypto exchange will return at least IDR 17.2 trillion to its non-functional loan program customers and pay a fine of IDR 580 billion due to unhealthy and unhealthy practices as part of a settlement with the New York Ministry of Financial Services (NYDFS), regulators announced on Wednesday, February 18th.

The Earn Gemini program, offered in partnership with crypto lender Genesis Global Capital, was suspended during the crypto market crash in November 2022. The dislocation caused Genesis to file bankruptcy and has led to widespread litigation between Genesis, Gemini, and parent company Genesis, Digital Currency Group (DCG).

This agreement means Earn Gemini customers, who have not been able to access the funds stored on the account since late 2022, are one step closer to regaining access to their money.

NYDFS said on Wednesday that it retains the right to take further action against Gemini if the company does not fulfill its obligation to return at least Rp17.2 trillion to customers following the completion of Genesis bankruptcy. Gemini has pledged to make a contribution of Rp628.3 billion to settle Genesis bankruptcy to benefit Earn customers, regulators said.

Gemini are run by Cameron and Tylerhubunganvoss - also known as theluyvoss Twins, who drew national attention through their legal battle against Meta Platforms CEO Mark Zuckerberg. The company has previously sued DCG for the failure of its crypto loan partnership.

The two companies partnered in December 2020 to allow Gemini customers to lend their crypto assets to Genesis in exchange for interest, eventually raising billions of dollars in crypto assets from investors.

NYDFS claims that Gemini failed to monitor and perform due diligence on Genesis all-time Earn's program and failed to maintain adequate reserves.

Gemini failed to perform a due diligence against an unregulated third party, which was later accused of mass fraud, cost Earn customers suddenly unable to access their assets after Genesis Global Capital went into financial bankruptcy, Superintendent NYDFS Adrienne Harris said in a statement. "Today's settlement is a win for Earn customers, who have rights to assets they trust Gemini."

In a blog post, Gemini said it had "worked tirelessly over the past 15 months to defend Earn users and look for their asset returns."

"Gemini thanks the New York Ministry of Financial Services (DFS) for their role in this settlement, which provides a one-by-one coin recovery for Earn users."