The Gemini Earn Program
Genesis Global Capital, owned by Digital Currency Group (DCG), was a major crypto lender. It partnered with the exchange Gemini on a product called “Gemini Earn,” which let everyday customers lend their crypto to Genesis in exchange for attractive interest. New York’s attorney general alleged that Genesis, DCG and Gemini misled these investors about how safe the program was — downplaying Genesis’s financial troubles — and that when Genesis froze withdrawals during the 2022 crypto crisis, tens of thousands of customers were locked out of more than a billion dollars. The suit was later expanded, alleging fraud exceeding $2 billion.
About 29,000 New York residents alone had entrusted more than $1.1 billion to the program, according to the state.
The Settlement
In May 2024, the New York attorney general announced a $2 billion settlement with Genesis — described as the largest against a crypto firm in the state’s history — to compensate defrauded investors. Genesis neither admitted nor denied the allegations, agreed to a victims’ fund and was barred from operating in New York; the settlement was tied into Genesis’s bankruptcy repayment plan. Separately, Gemini agreed to return roughly $50 million in assets to Earn users, and litigation continued against other defendants. Distributions to customers flow largely through the bankruptcy process.
So the recovery combines a record state settlement with an ongoing bankruptcy that returns assets to customers.
What Customers Should Know
Gemini Earn and Genesis customers receive recoveries through the settlement and bankruptcy process — follow official communications from the court-approved administrators and the New York attorney general, and ignore anyone charging a fee to ‘recover’ your crypto. As with other failed crypto lenders, the episode underscores that lending your crypto for yield puts it at risk if the borrower fails, and such products lack the insurance that protects bank deposits.
Before You Act
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Genesis Crypto Lawsuit: The $2 Billion New York Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is the Genesis crypto lawsuit about?
New York's attorney general alleged Genesis, its parent DCG and Gemini misled investors in the Gemini Earn program about its safety, and that when Genesis froze withdrawals in 2022, tens of thousands of customers were locked out of over a billion dollars. The claims grew to exceed $2 billion.
How much was the Genesis settlement?
$2 billion, announced by the New York AG in May 2024 — the largest against a crypto firm in the state's history — to compensate defrauded investors, tied into Genesis's bankruptcy plan. Genesis was barred from New York; Gemini separately agreed to return about $50 million.
How do affected customers recover money?
Through the settlement and bankruptcy process. Follow official communications from the court-approved administrators and the New York attorney general, and avoid anyone charging a fee to 'recover' your crypto.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.