Summary
Gemini exchange to reimburse $1.1 billion to customers in Gemini Earn program after Genesis collapse. NYDFS warns of additional measures if commitments not met. Uncertainty remains for customers in receiving their assets. Gemini faces $37 million fine for failures. Customers confused about asset protection under FDIC.
Key Points
1. Gemini has settled with the New York Department of Financial Services (NYDFS) to reimburse approximately $1.1 billion to its Gemini Earn customers who were unable to withdraw their funds following the collapse of the crypto lending platform Genesis.
2. The NYDFS has warned Gemini of further measures if it fails to meet its commitments, and the exchange faces a $37 million fine for significant failures that jeopardized its safety and soundness.
3. Uncertainty looms over Gemini Earn customers as they speculate on the amount they may receive from the reimbursement, with reports suggesting they could potentially receive only 61% of the value of their crypto assets. Some customers also believed their assets were protected under the FDIC, leading to confusion and concerns.