Just received an email from Gemini saying that, per resolution of an SEC lawsuit, they are eliminating custodial accounts and users must withdraw their assets or transfer them to self-managed wallets at Crypto.com.
What does this mean for Brave rewards?
@gneuner no impact on Rewards because Gemini hasnāt been a thing for a very long time now. Iām wanting to say no new connections able to be made for around 2 yearsā¦but at least 1 year.
Itās been just Uphold for most countries, and then ZebPay for India and BitFlyer for Japan.
Beyond that, been the whole on-chain direction. If youāve not been paying attention, might want to check out PSA: Current and upcoming changes to Rewards and Creators to learn more about that along with a lot of the other changes surrounding Rewards.
Anyone who had been connected to Gemini remained connected until they reset the profile or something. But if ever trying to connect a new device or had reset the profile, then never would have been able to connect again.
If they are closing up, then you may want to reset your Rewards and connect to Uphold or try for on-chain when it becomes available.
EDIT
Should note that the way you phrase it for ācustodial accountā is a bit strange as thatās all they are. Iām not sure if anything requiring them to kind of close up, but I do know they did stop a lot of services in Canada a little while ago.
Regardless of the situation with Gemini, itās still important to note that users havenāt been able to connect Rewards to Gemini for a long time as I indicated earlier. So even if itās true, it really wouldnāt have any impact on Rewards or Brave except that anyone who has had their Rewards linked may have to switch up to one of the other options.
Can you confirm the legitimacy of the email? @gneuner
It appears to be legitimate.
I have been on Gemini for a long time, and I followed the 2023 SEC case re: āEarnā and FTX ā¦ but I thought it was done with. Though no news from other sources, the Gemini email says (in part):
Background on the SEC Resolution
In January 2023, the SEC filed a lawsuit against Gemini, alleging that our Gemini Earn program, launched in 2021, involved unregistered securities. The program allowed customers to lend crypto assets for interest. In November 2022, our lending partner, Genesis, paused withdrawals, affecting $900 million in customer funds. After a two-year legal process, weāve reached a settlement that requires Gemini to discontinue custodial services and move all assets to self-custody. This ensures compliance with regulations while keeping your control and security first.
Your Transition to Crypto.com Wallet
Per the settlement, you must transfer your assets to a self-custodial wallet by May 14, 2025. Weāve partnered with the Crypto.com Wallet, a secure platform supporting a wide range of cryptocurrencies, to provide a preconfigured wallet solution. ā¦
:
What This Means for You
After May 14, 2025, Gemini will no longer hold customer assets due to the SEC settlement terms. This 30-day period gives you ample time to transition. Your Crypto.com Wallet, secured by the provided phrase, ensures you have full control over your assets, as required by the resolution. We selected the Crypto.com Wallet for its reliability and user-friendly interface to keep your funds safe and accessible. Please act before the deadline to avoid any issues accessing your assets through Gemini.
@gneuner looks to be a scam to me. Especially this part:
They would do no such thing. Even if you were supposed to move elsewhere, they would tell you to create an account and get it set up or something, but even that wouldnāt quite be right. Often youāre just told to move it to a wallet of your choosing or they will automatically sell your crypto and deposit it into your bank account.
They would not have a wallet set up, provide you the seed phrase, and then ask you to send your crypto over to it. The idea that they tell you to use a secured phrase that they are providing in an email is enough to let you know itās compromised.
@Saoiray - You are absolutely right to point out the potential for scam. Examining the mail headers, the message looks legitimate ā¦ but without knowing Geminiās DKIM code(s), thereās no way to tell for sure.
Latest business news is that on April 1st the SEC and Gemini asked the court for a 60-day pause to discuss an [as yet undisclosed] resolution to the case.
If Gemini is to be shut down, I wouldnāt use their provided wallet in any case. I donāt have an Uphold account, but I have accounts at a few other places to which I could move things just to get out of Gemini.
Thanks.