Crypto exchange Gemini agreed to pay a hefty fine to a New York financial regulator over compliance failures and has to return at least $1.1 billion to Gemini Earn lending program customers. 

The settlement, which was announced on Wednesday by the New York State Department of Financial Services, is the latest in the legal saga of the Gemini Earn program. Gemini Earn, which was offered by the Winklevoss twins-led company, launched in 2021 and allowed Gemini customers to loan their crypto to now bankrupt Genesis Global Capital, LLC and then earn up to 7.4 percent APY. 

“Gemini failed to conduct due diligence on an unregulated third party, later accused of massive fraud, harming Earn customers who were suddenly unable to access their assets after Genesis Global Capital …