By Sabela Ojea

New York Attorney General Letitia James recovered about $50 million from Gemini Trust Company, and banned the cryptocurrency platform from operating in the state.

James's office on Friday said that 230,000 investors, including at least 29,000 New Yorkers who invested in the Gemini Earn program, will receive $50 million of digital assets after being allegedly defrauded by Gemini.

The settlement resolves claims against Gemini and follows a $2 billion settlement with Genesis. It also provides investors full recovery of the assets they invested in the Earn program but were unable to withdraw when the investment program collapsed.

"Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts," James said.

In October, James's office sued Gemini for allegedly lying to investors about the risks associated with its Earn program.

Write to Sabela Ojea at

(END) Dow Jones Newswires

06-14-24 1340ET