- Attorney General of New York Letitia James reports that her office has obtained a $2 billion settlement with Genesis.
- AG In October, Letitia James filed a lawsuit against the cryptocurrency business, claiming that it had deceived investors out of over $1 billion.
- It is now illegal for Genesis to operate in New York.
Genesis, a cryptocurrency lender, and the Attorney General of New York struck a $2 billion settlement on Monday following the AG’s lawsuit against Genesis in late 2023.
Genesis Trading and the New York AG reach a settlement
Attorney General Letitia James of New York revealed in an X post on Monday that her office has reached a $2 billion settlement with the insolvent cryptocurrency company Genesis Global. The deal was reached to pay back investors who, according to her, had been duped and misled by the business.
In October 2023, AG Letitia James filed a lawsuit against the corporation, alleging that it had deceived investors out of more than $1 billion. This was in addition to a complaint filed against DCGco, alleging that the unregulated cryptocurrency market had led the companies to scam 230,000 investors through the Gemini Earn investing platform.
This started when Genesis froze its users’ ability to withdraw money from the site following its Chapter 11 bankruptcy filing earlier in 2023. The company’s request to return $3 billion in cash and cryptocurrencies to its consumers was only granted judicial approval last week.
The Genesis settlement is the biggest in New York history against a cryptocurrency firm. “This historic settlement is a major step towards ensuring the victims who invested in Genesis have a semblance of justice,” stated Attorney General Letitia James.
“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,” she said.
The settlement, which also needed the permission of the bankruptcy court, will establish a “Victim’s Fund” for investors who were duped. Furthermore, Genesis is not permitted to conduct business in New York.
