![]() ![]() Gemini's Earn customers were concerned about the security of their investments throughout the bear market that occurred in 2018 while the crypto currency market was in freefall. Individuals are prohibited from imposing or implying that an unsecured product is FDIC-insured, as well as from intentionally distorting the extent and method of deposit insurance per the stringent requirements of the Federal Deposit Insurance Act. ![]() According to a few claims made by Gemini's clients, they were given the impression that the FDIC was responsible for ensuring the Earn products rather than another financial institution, which would generally be accountable for insurance of this kind. However, it needs to be clarified why Gemini would choose to contravene the restrictions established by the federal government. One of these companies was the now-defunct FTX US. The regulatory agency already has a track record of issuing rolling stop and desist judgments to five different crypto currency firms that had previously made such claims. Following the company's allegations concerning the funds held in its Earn Lending Program, the New York State Department of Financial Services has initiated an inquiry against the crypto currency exchange Gemini.Ĭompanies that fall within the purview of the State's BitLicense scheme are subject to the oversight of the Department of Financial Services.Ī report ( 1) from Axios dated the 30th of January stated that the New York State agency that regulates Gemini was looking into various claims that claimed consumers believed their funds in Earn accounts were protected by the FDIC.
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