Letitia James gets $50 million win

By 
 June 16, 2024

New York Attorney General Letitia James (D) just obtained a $50 million victory.

Newsweek reports that this is the amount of money that the cryptocurrency platform Gemini Trust has agreed to give back to some of its investors.

Gemini Trust is doing so to resolve a lawsuit that was brought against it by James.

James, as we will see, is celebrating this as a massive win.

Background

James, according to Newsweek, brought the lawsuit against Gemini Trust back in October 2023. James accused the company of having defrauded its customers.

"Cryptocurrency platform Gemini Trust agreed on Friday to return $50 million to customers who invested into the failed investment program Gemini Earn to resolve a lawsuit brought forward by New York Attorney General Letitia James," the outlet reports.

In other words, it appears that James, on behalf of these investors, has reached a settlement with Gemini Trump in which the company has agreed to return money to its customers in order to end the lawsuit that had been brought against it by James.

Newsweek continues, "It is a massive victory for James, who had sued the company in October over its handling of the program, accusing Gemini of lying to its customers about the risk of it. The win is also a relief for more than 230,000 investors—including 29,000 New Yorkers—who will be reimbursed by the crypto platform."

The lie, according to Newsweek, was that the crypto lending program Gemini Earn "promised high interest rates to Gemini customers who lent their crypto assets to third-party borrower Genesis." After they did so, Gemini Earn then froze their assets until now.

James celebrates

On Friday, James released a statement, via her X account, celebrating this victory.

"We recovered $50 million from cryptocurrency platform @Gemini for defrauding hundreds of thousands of investors.     Everyone that Gemini deceived will get their money back," she wrote.

In a subsequent message, she added, "@Gemini worked with crypto platform @GenesisTrading and lied to people about the risk of their investments, and last month, we secured $2 billion from Genesis for its role in this scheme.     We'll continue to crack down on crypto companies that don’t play by the rules."

This is one of several recent legal victories that James has achieved. These victories follow her successful lawsuit against former President Donald Trump for civil fraud, although this case is highly controversial and it is on appeal.

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