CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$27,645.00
  • ethereum
    ETH$1,750.81
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » NYDFS Probes Gemini Over Claims Concerning the Earn Program (Report)

    NYDFS Probes Gemini Over Claims Concerning the Earn Program (Report)

    Author: Dimitar Dzhondzhorov

    Last Updated Jan 30, 2023 @ 15:37

    New York’s watchdog alleged Gemini of misleading Earn customers.

    The New York Department of Financial Services reportedly launched an investigation against Gemini, alleging that the cryptocurrency exchange told its 340,000 Earn users they were FDIC-protected.

    The program, which provided clients up to 7.4% APY on their holdings, went down after the platform’s partner – Genesis – halted withdrawals and filed for bankruptcy.

    The NYDFS Targets Gemini

    As reported by Axios, New York’s regulator started investigating the Winklevoss-led trading venue for misleading Earn customers that their assets were backed by the Federal Deposit Insurance Corporation. Federal law forbids anyone from “implying that an uninsured product is FDIC–insured or from knowingly misrepresenting the extent and manner of deposit insurance.”

    Gemini previously revealed that the firm’s deposits at outside banks are protected and not its own products. However, Earn clients said they could not find the difference, hence the confusion. Todd Phillips – a former senior attorney at the FDIC – agreed that the communication between the crypto platform and its users could indeed cause some sort of misunderstanding:

    “Is it skeezy? For sure. Is it illegal? I don’t know. I can’t really say.”

    Gemini and Genesis introduced the Earn program in 2021, which amassed nearly 350,000 users in the following years. The FTX crash, though, crippled Genesis’ operations and the mutual offering. Gemini Earn investors had their assets frozen, but the exchange vowed to use “every tool available” to refund them. It set a creditors’ committee to help with the task and maintained that Genesis owes approximately $900 million to users. 

    ADVERTISEMENT

    It remains uncertain how the latter will repay its debt since it filed for Chapter 11 bankruptcy protection earlier this month.

    Gemini’s Other Problems

    The US SEC recently filed a complaint against Gemini and Genesis for allegedly selling unregistered securities to retail investors in the States. Chairman Gary Gensler said the charge’s goal is to show that cryptocurrency lending platforms and intermediaries must abide by the American laws. 

    Gurbir S. Grewal – Director of the SEC’s Division of Enforcement – believes the recent termination of the Earn program highlights the necessity for such investigations. He also urged affected users to contact the SEC’s Whistleblower Program.

    Gemini has also put its name on the long list of crypto companies that dismissed staff for various reasons, with the market downturn being the primary one. It recently laid off 10% of its total workforce, citing unfavorable macroeconomic factors and “unprecedented fraud” within the industry.

    The firm made another 10% staff reduction in July 2022.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • Silbert_Winklevoss
      Cameron Winklevoss Calls for the Removal of DCG CEO Barry Silbert
    • Gemini_Lawsuit
      Winklevoss Twins and Gemini Sued for Fraud Over Interest Accounts: Report
    • DCG_Stop
      DCG Suspends Quarterly Dividends Amidst Genesis Crisis: Report
    Tags: Gemini Regulations Winklevoss Twins
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Dimitar Dzhondzhorov
    More posts by this author

    Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.

  • bitcoin
    BTC$27,645.00
  • ethereum
    ETH$1,750.81
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    How to Keep Your Crypto Safe, MetaMask Future Plans, and Digital Identities: Talking Wallets With PM Alex Jupiter

    How to Keep Your Crypto Safe, MetaMask Future Plans, and Digital Identities: Talking Wallets With PM Alex Jupiter

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!