Gemini security record

New York AG sues Gemini over unlicensed prediction markets

Attorney General Letitia James sued Gemini and Coinbase, alleging their prediction markets amount to illegal, unlicensed gambling in New York: no licence from the New York State Gaming Commission, participation by users aged 18 to 20 where state law requires 21, betting on games involving New York college teams, and none of the tax a licensed operator owes. She asked the court to order forfeiture of the illegal profits, restitution to harmed consumers, and fines equal to three times those profits. The case is open. The claim concerns prediction markets, not bitcoin trading or custody.

NY Attorney General press release

Gemini closes its UK, EU and Australia businesses

Gemini announced it would shut its United Kingdom, European Union and Australian operations and cut 25% of its workforce, to concentrate on the United States, prediction markets and its consumer products. Customer accounts in the affected regions were placed in withdrawal mode from 5 March 2026, with full account closures in April 2026, and Gemini directed customers to eToro to assist in transferring assets. This was a commercial retreat rather than a licence revocation, but it means buyers in those regions can no longer open a Gemini account.

Fortune via Yahoo Finance

SEC drops its Gemini Earn lawsuit

The SEC sued Genesis and Gemini in January 2023, alleging Gemini Earn was an unregistered offer and sale of securities. The agency agreed to dismiss, filing a stipulation on Friday 23 January 2026 and stating that dismissal was appropriate because Earn investors got 100% of their crypto assets back through the Genesis bankruptcy. Gemini paid no penalty to the SEC.

Banking Dive

CFTC fines Gemini $5 million over statements about a bitcoin futures contract

Gemini was ordered to pay a $5 million civil monetary penalty over statements made to the CFTC between July and December 2017, while it was seeking to self certify a bitcoin futures contract. The CFTC said the statements were false or misleading on its prefunding requirement, capital costs, self trade prevention, fee rebates and trade volume, and that they were material to whether the contract would be readily susceptible to manipulation.

CFTC press release 9031-25

New York AG settlement returns $50 million and bans Gemini lending in the state

The Attorney General found that Genesis loans behind Earn were under secured and at one point highly concentrated with a single entity, Sam Bankman-Fried's Alameda, while Gemini marketed the programme to customers. Gemini returned approximately $50 million in digital assets to more than 230,000 investors, including at least 29,000 New Yorkers, and is banned from operating any crypto lending programme in New York. The settlement followed a separate $2 billion settlement with Genesis.

NY Attorney General press release

NYDFS fines Gemini $37 million over the Earn programme

A consent order found that Gemini failed to conduct sufficient and ongoing due diligence on Genesis Global Capital, an unregulated third party, and failed to maintain adequate reserves throughout the life of Earn. NYDFS also found that Gemini Liquidity, LLC, an unregulated affiliate, collected hundreds of millions of dollars in fees from Gemini customers that could otherwise have gone to Gemini, substantially weakening Gemini's financial condition. Gemini paid a $37 million penalty to the Department, contributed $40 million to the Genesis bankruptcy, and committed to returning at least $1.1 billion to Earn customers. NYDFS put the affected group at over 200,000 Earn customers, including almost 30,000 New Yorkers.

NYDFS press release

Third party vendor breach exposed 5.3 million customer email addresses

A data set posted to a public hacking forum in late 2022 contained email addresses and partial phone numbers for about 5.3 million Gemini accounts. The hacker claimed the data came from Gemini. That claim was disproven: the source was traced to Twilio, which processed the data of some Gemini customers through its Authy two factor service and was hit by a social engineering attack on employee credentials. The exposed fields were contact details only, not credentials or account access. Have I Been Pwned recorded the incident on 16 December 2022; it dates the breach itself only to December 2022.

Have I Been Pwned

Gemini Earn froze when lending partner Genesis halted withdrawals

Genesis Global Capital, the borrower behind the Gemini Earn yield programme, stopped redemptions on 16 November 2022 after the collapse of FTX, having defaulted on approximately $1 billion of loans, and filed for bankruptcy on 19 January 2023. About 232,000 Earn users had active loans outstanding at that point and were locked out for roughly 18 months. Gemini's exchange and custody accounts were not part of Earn and kept operating. Earn users received 97% of their assets back in kind on 29 May 2024 and the remaining 3% on 20 June 2024, which Gemini states is 100% of the assets owed, returned in kind.

Gemini Earn updates page

Deloitte completes SOC 1 Type 2 and SOC 2 Type 2 examinations

Gemini said Deloitte and Touche LLP tested the controls behind the exchange and Gemini Custody over a period covering 2020 rather than at a single point in time, covering financial reporting controls as well as security, availability and confidentiality. A Type 2 examination checks that controls actually operated over time, which is a stronger claim than a Type 1. Gemini said at the time it would repeat the examinations on a yearly basis. Note that this is a 2021 statement of intent: no later dated announcement was found, and the reports themselves are not published, so it should not be read as evidence of a current examination.

Gemini blog

NYDFS grants Gemini a limited purpose trust charter

The New York State Department of Financial Services granted Gemini Trust Company, LLC a charter under New York Banking Law to operate as a limited purpose trust company with fiduciary powers, and authorised it to begin operations immediately. NYDFS said the charter followed a review of the firm's anti money laundering protocols, capitalisation, consumer protections and cybersecurity standards. It was the second virtual currency trust charter NYDFS granted, after itBit in May 2015. That is a bank style charter rather than a money transmitter licence or a BitLicense, and it remains the basis of the platform's regulatory standing in the United States.

NYDFS press release