New York Regulator Launches Investigation into Gemini
The New York State Department of Financial Services (NYDFS) has recently launched an investigation into cryptocurrency exchange Gemini after receiving complaints about the security of customer assets, Axios has reported.
According to the publication, the platform has repeatedly assured that the funds of users of its Earn product are insured by the FDIC, however, this appears to be untrue and the claims are contrary to US federal law.
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Gemini suspended asset withdrawals under Earn in November following the collapse of FTX.
The platform claimed at the time that the decision had been made due to $900 million debt of its partner Genesis. The company’s owner Digital Currency Group filed for bankruptcy on January 20.
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Several Gemini customers claim the exchange has claimed to have deposit insurance.