The prior bankruptcy settlement resulted in earned users receiving 97% of their assets that were not returned, “leaving a 3% stop,” according to a source familiar with the settlement. And the latest settlement gives back that 3%.
New York Attorney General Letitia James obtained a $50 million settlement with a cryptocurrency exchange, which claimed it offered a “low-risk” investment option to investors but deliberately failed to disclose that its loans were highly concentrated with Alameda Research, the sister firm of Sam Bankman-Fried’s FTX.
“Today’s settlement will make defrauded investors whole and should remind cryptocurrency companies that deceiving investors is illegal and will not be tolerated by my office,” James said in a statement on Friday. James represented the plaintiff, retail customers loaned digital assets through the Gemini Earn product offered by a defendant, Gemini Trust Co. LLC.
