Gemini Trust, a company for trading cryptocurrencies, was created by two brothers named Cameron and Tyler Winklevoss. This company has been asked to pay back about $1.1 billion to customers. The customers lost their money when Gemini Trust’s loaning service closed. A financial regulator from New York made this decision.
Gemini Trust will also give $37 million as a fine. This is because the company made some serious mistakes which put it in danger. Also, the regulator in New York said that they can take more action against Gemini Trust if they don’t do what they are told to do.
Cameron and Tyler Winklevoss, who look after Gemini, are well-known people. This is because they spent many years in a legal dispute. They believed that Mark Zuckerberg took away their idea for Facebook. In the end, they received $65 million.
Due to the decision, Gemini said on Wednesday that customers would get back all their digital assets. They would also get any extra value if there was an increase.
Gemini had a plan which they said was low-risk. Customers could give their cryptocurrency to another company, Genesis Global Capital (GGC), and earn up to 8% as interest payment.
The company also announced that they would return more than $1.8 billion. This is more than what the amount was in November 2022 when GGC stopped all withdrawals.
The decision was made after the value of the cryptocurrency market went down drastically due to the fall of a company called FTX.
This decision does not mean that Gemini is now free from legal problems. The company still has another lawsuit to face which was filed by New York’s attorney general. Gemini, along with two other companies, are accused of lying to investors and hiding losses of over $1 billion.
Vocabulary List:
- Cryptocurrency (noun): A form of digital or virtual currency that uses cryptography for security.
- Regulator (noun): An official or organization responsible for controlling and supervising a particular area or activity.
- Dispute (noun): A disagreement or argument between two or more parties.
- Assets (noun): Valuable or useful things or qualities owned by a person or organization.
- Withdrawals (noun): The act of taking money out of an account or investment.
- Lawsuit (noun): A claim or dispute brought to a court of law for adjudication.
