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Genesis hits the wall with $2 billion deal, inaugurated in New York
New York Attorney General Letitia James has finalized a settlement worth $2 billion with bankrupt cryptocurrency firms Genesis Global Capital, LLC, Genesis Asia Pacific PTE, LTD. and Genesis Global Holdco, LLC (collectively known as Genesis).
This settlement aims to maximize recoveries for investors who have suffered financial losses. It includes the creation of a victims’ fund to compensate defrauded investors, including at least 29,000 New Yorkers who invested more than $1.1 billion through the Gemini Earn program. Additionally, the agreement prohibits Genesis from conducting business in New York.
The deal required bankruptcy court approval due to Genesis‘state of failure. This is the largest settlement against a cryptocurrency company in New York State history. Attorney General James highlighted the importance of this settlement in providing some level of justice to victims of Genesis’ activities. The deal continues James’ efforts to improve oversight and regulation in the cryptocurrency industry, having raised over $2.5 billion from various cryptocurrency platforms to date.
The attorney general’s office previously filed a lawsuit in October 2023, accusing Genesis of hiding more than $1.1 billion in losses from investors. This lawsuit was expanded in February to include additional fraud allegations involving Genesis and related entities. According to the terms of settlement Genesis admits no wrongdoing and the lawsuit will continue against other defendants, including Digital Currency Group, Inc. and its executives.
A fund for victims has been established to compensate creditors
The newly established Victims’ Fund will distribute the remaining assets of Genesis’ estate to compensate creditors. If creditors are not fully repaid based on the current value of the digital assets, the fund could receive up to $2 billion from Genesis’ assets to cover losses.
Attorney General James encourages New Yorkers affected by deceptive practices in virtual asset markets to report such issues to his office and urges industry workers who witness such misconduct to file complaints
whistler complaints, which can be submitted anonymously.
New York Attorney General Letitia James has finalized a settlement worth $2 billion with bankrupt cryptocurrency firms Genesis Global Capital, LLC, Genesis Asia Pacific PTE, LTD. and Genesis Global Holdco, LLC (collectively known as Genesis).
This settlement aims to maximize recoveries for investors who have suffered financial losses. It includes the creation of a victims’ fund to compensate defrauded investors, including at least 29,000 New Yorkers who invested more than $1.1 billion through the Gemini Earn program. Additionally, the agreement prohibits Genesis from conducting business in New York.
The deal required bankruptcy court approval due to Genesis‘state of failure. This is the largest settlement against a cryptocurrency company in New York State history. Attorney General James highlighted the importance of this settlement in providing some level of justice to victims of Genesis’ activities. The deal continues James’ efforts to improve oversight and regulation in the cryptocurrency industry, having raised over $2.5 billion from various cryptocurrency platforms to date.
The attorney general’s office previously filed a lawsuit in October 2023, accusing Genesis of hiding more than $1.1 billion in losses from investors. This lawsuit was expanded in February to include additional fraud allegations involving Genesis and related entities. According to the terms of settlement Genesis admits no wrongdoing and the lawsuit will continue against other defendants, including Digital Currency Group, Inc. and its executives.
A fund for victims has been established to compensate creditors
The newly established Victims’ Fund will distribute the remaining assets of Genesis’ estate to compensate creditors. If creditors are not fully repaid based on the current value of the digital assets, the fund could receive up to $2 billion from Genesis’ assets to cover losses.
Attorney General James encourages New Yorkers affected by deceptive practices in virtual asset markets to report such issues to his office and urges industry workers who witness misconduct to file complaints
whistler complaints, which can be submitted anonymously.