- Attorney General Letitia James has announced a $2B settlement with bankrupt Genesis.
- The settlement seeks recoveries for 29K New Yorkers who lost over $1.1B.
- Part of the settlement terms is a ban on Genesis from operating within New York
In a landmark victory for defrauded investors, New York Attorney General Letitia James has announced a $2 billion settlement with the bankrupt cryptocurrency firm Genesis Global Capital and its subsidiaries.
This settlement is the largest of its kind against a crypto company in New York State history. It aims to maximize recoveries for investors, including at least 29,000 New Yorkers who lost over $1.1 billion through the Gemini Earn investment program.
Notably, the agreement is pending approval from a bankruptcy court. Following the appropriate approvals, a victims’ fund will be created to compensate the defrauded investors.
The Victims’ Fund will receive distributions from Genesis’ remaining assets after initial bankruptcy distributions to creditors. The fund will distribute up to $2 billion to cover their actual losses if the creditors are not fully compensated based on current digital asset values.
Attorney Gener…
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