Nydfs examines Gemini for claims regarding the EARN program (report)

Nydfs examines Gemini for claims regarding the EARN program (report)

reported that the New York Ministry of Finance initiated an investigation against Gemini and claimed that the cryptocurrency exchange had informed its 340,000 EARN users that they were protected.

The program that customers brought up to 7.4 % APY on their stocks was discontinued after the partner of the platform-Genesis-had stopped with the withdrawals.

The Nydfs aims at twins from

as reported from Axios began to examine the new York supervisory authority to examine the trading center led by Winklevoss To mislead that their assets are covered by the Federal Deposit Insurance Corporation. The Federal Law prohibits everyone "to assume that an uninsured product is FDIC insured, or knowingly to present the scope and type of deposit protection."

Gemini previously announced that the company's deposits are protected by external banks and not its own products. However, Earn customers said they could not find the difference, hence the confusion. Todd Phillips-a former senior lawyer at the FDIC-agreed that communication between the crypto platform and its users could actually lead to misunderstandings:

"Is it vague? With certainty. Is it illegal? I don't know. I can't really say it."

Gemini and Genesis introduced the EARN program in 2021, which accumulated almost 350,000 users in the following years. However, the FTX crash paralyzed the operation of Genesis and the mutual offer. Gemini Earn investors had frozen their assets, but the stock exchange promised to use "all available instruments" to reimburse them. It started a creditor committee to help with the task and claimed that Genesis owed around $ 900 million to users.

It remains uncertain how their debts will have been repaid since then for insolvency protection according to chapter 11 early this month.

Other problems of the twin

The US SEC recently preserver-spaces = "true"> a lawsuit against gemini and genesis due to alleged sales to small investors in the states. The chairman Gary Gensler said the goal of the indictment was to show that cryptocurrency meat platforms and brokers must comply with American laws.

Gurbir S. Grewal-Director of the SEC Division of Enforcement-believes that the recent setting of the EARN program underlines the need for such investigations. He also asked the users concerned to contact the Whistleblower program of the SEC.

Gemini also put his name on the long list of crypto companies that have released employees for various reasons, whereby the main reason was the main reason. It recently terminated 10 % of the total workforce, citing unfavorable macroeconomic factors and "examples" within the industry.

The company A further 10 % personnel mining in July 2022.

.