ChainCatcher news, according to DL News, New York has recovered $50 million in digital assets from the cryptocurrency exchange platform Gemini Trust to compensate investors deceived by its Gemini Earn program, while also banning the platform from engaging in crypto lending.

ChainCatcher news, according to Bloomberg, the cryptocurrency exchange Gemini has reached a settlement with the New York Attorney General's office regarding a fraud lawsuit, agreeing to pay $50 million in digital assets to Gemini Earn investors. As part of the settlement agreement, Gemini Earn is also prohibited from operating in the state. Gemini stated in a press release on Friday that the final distribution of earnings will reach customer accounts within seven days.Previously, New York Attorney General Letitia James filed a lawsuit against Gemini in October last year, accusing the platform of misleading investors in the Gemini Earn program, resulting in losses of over $1 billion.

ChainCatcher news, according to The Block, one of Genesis's creditors, Gemini, announced that it will begin returning the first batch of 97% of assets to customers of the Genesis Earn program in physical form by the end of this month. According to previous reports, Genesis Global received court approval on Friday to return approximately $3 billion in cash and cryptocurrency to its customers during the bankruptcy liquidation, from which its parent company, Digital Currency Group (DCG), will not receive any funds.

ChainCatcher news, citing sources from Bloomberg, reported that in August 2022, the cryptocurrency exchange Gemini withdrew approximately $282 million from Genesis a few months before Genesis froze deposits and ultimately filed for bankruptcy.According to insiders, the funds withdrawn from Genesis were used to establish reserves to ensure that customers of Gemini Earn could redeem their investments immediately.

According to ChainCatcher, as reported by CoinDesk, three Gemini Earn users have filed a class action arbitration request against Genesis Global Capital and Digital Currency Group in response to Gemini's suspension of its Gemini Earn product plan due to Genesis freezing withdrawals.The claimants allege that Genesis failed to return the digital assets of Gemini Earn users as required by the main agreement between the company and the users. Furthermore, the lawsuit mentions that Genesis had initially violated the main agreement in the summer of 2022 but concealed its insolvency from customers, and that Genesis engaged in a fraudulent transaction with its parent company DCG to cover up bankruptcy issues. (CoinDesk)

ChainCatcher news, Crypto.com CEO Kris Marszalek stated on Twitter that Crypto.com has zero exposure to Genesis and Gemini Earn. (source link)

ChainCatcher news, according to Bloomberg, cryptocurrency financial services company Galaxy Digital has not been involved in Genesis's lending business or Gemini Trust's Earn program.Previously reported, Galaxy Digital CEO Michael Novogratz believes that the $77 million risk exposure related to FTX cannot be recovered. (Source link)

ChainCatcher message, Tether's official statement confirms that it has zero contact with Genesis or Gemini Earn, and USDT is 100% backed by its reserves, with the assets supporting the reserves exceeding liabilities. (Source link)