New York Attorney General Letitia James has reached a $2 billion settlement with Genesis, the bankrupt cryptocurrency firms.
This agreement is designed to help investors who suffered losses, particularly through the Gemini Earn program, with over 29,000 New Yorkers affected. The settlement includes setting up a fund to compensate defrauded investors and prohibits Genesis from operating in New York going forward.
Historic Settlement for Genesis Cryptocurrency Firms
New York Attorney General Letitia James has finalized a historic $2 billion settlement with Genesis, a group of bankrupt cryptocurrency companies. Approved by a bankruptcy court, this settlement is the largest ever against a cryptocurrency firm in New York. Its aim is to compensate victims, including more than 29,000 New Yorkers who invested over $1.1 billion through the Gemini Earn program. Genesis is now prohibited from operating in New York.
Attorney General James emphasized the importance of this settlement in providing justice to those impacted by Genesis’ actions. Her office continues to enhance oversight and regulation in the cryptocurrency industry, having previously recovered more than $2.5 billion from various crypto platforms.
In October 2023, the Attorney General’s office filed a lawsuit accusing Genesis of hiding losses exceeding $1.1 billion from investors. In February, the lawsuit expanded to include additional fraud allegations against Genesis and its associates. Despite the settlement, Genesis has not admitted wrongdoing, and litigation will proceed against other defendants, including Digital Currency Group, Inc. and its executives.
New York Attorney General James Secures Settlement Worth $2 Billion From Crypto Firm Genesis Global Capital For Defrauded Victims – Genesis Banned From Operating In New York https://t.co/J8e6TX7VXK
— Mondo Visione (@ExchangeNews) May 20, 2024
Compensation and Support for Genesis Victims
Following the $2 billion settlement with Genesis, a bankrupt cryptocurrency group, the newly established Victims’ Fund will play a crucial role in distributing remaining assets from Genesis’ estate to compensate creditors. This fund is designed to help reimburse investors who suffered financial losses due to Genesis’ activities, including those who participated in the Gemini Earn program. If current digital asset values do not fully cover creditors’ claims, the fund may receive up to $2 billion from Genesis’ assets to ensure losses are covered.
New York Attorney General Letitia James encourages individuals affected by deceptive practices in virtual asset markets to report their concerns to her office. Additionally, she urges industry insiders who have witnessed misconduct to submit whistleblower complaints anonymously. These efforts are part of her ongoing commitment to enhance oversight and protect investors within the cryptocurrency sector.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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