The New York State Attorney General (AG) has brokered a $2 billion settlement with Genesis Global to help those defrauded by Gemini Earn.
Last winter, NY state AG Letitia James sued the crypto exchange Gemini, the lending firm Genesis and the investment giant Digital Currency Group (DCG) over allegations that the companies attempted to conceal $1.1 billion in losses and “repeatedly lied” to its investors.
Earlier this year, in an amended complaint, James raised the stakes to $3 billion due to more investors coming forward after the lawsuit’s initial announcement, forcing the AG’s office to revise their initial number.
Then, yesterday, a US bankruptcy court greenlit Genesis Global’s liquidation plan to return about $3 billion to its creditors.
Today, New York State Attorney General James is announcing a $2 billion settlement with Genesis Global.
“When investors suffer losses because of fraud and manipulation, they deserve to be made whole. This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice. Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry.
New York investors deserve the peace of mind that comes from a properly regulated marketplace, and that is something my office will always act to achieve.”
The settlement will create a “Victims’ Fund” for DCG creditors pending bankruptcy court approval.
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