Gemini, a cryptocurrency exchange, will reimburse users $1.1 billion

Following a settlement with a New York regulator, Cameron and Tyler Winklevoss' cryptocurrency exchange Gemini Trust will repay at least $1.1 billion to users of its now-defunct lending program.

Gemini will pay a $37 million punishment to the regulator “for significant failures that threatened the safety and soundness of the company,” the NYDFS said Wednesday.

NYDFS can “bring further action against Gemini if the company does not fulfill its obligation,” it stated.

Gemini is founded by the Winklevoss twins, who sued Meta's Mark Zuckerberg for copying their Facebook idea and won a $65 million settlement.

The crypto exchange announced on Wednesday that Gemini Earn customers would receive 100% of their digital assets returned in kind and any value appreciation owing to the settlement.

Customers could lend crypto assets to Genesis Global Capital (GGC) and earn up to 8% interest with Gemini Earn, a low-risk investment.

“We will be returning over $1.8 billion in value (at today’s prices),” according to the Gemini blog, which it said was $700 million more than when GGC halted withdrawals in November 2022.