World Crypto Global
Genesis Hits the Wall with $2 Billion Settlement, Shown the Door in New York
New York Attorney General Letitia James has finalized asettlement worth $2 billion with the bankrupt cryptocurrency firms GenesisGlobal Capital, LLC, Genesis Asia Pacific PTE, LTD., and Genesis Global Holdco,LLC (collectively known as Genesis).
This settlement aims to maximize recoveries for investorswho experienced financial losses. It includes the creation of a victims' fundto compensate defrauded investors, among whom are at least 29,000 New Yorkerswho invested over $1.1 billion through the Gemini Earn program. Additionally,the settlement prohibits Genesis from conducting business in New York.
Settlement Reached in Genesis Bankruptcy Case
The settlement required approval from a bankruptcy court dueto Genesis' bankruptcy status. It marks the largest settlement against acryptocurrency company in New York State history. Attorney General Jamesemphasized the importance of this settlement in providing some level of justiceto the victims of Genesis' activities. The settlement continues James' effortsto enhance oversight and regulation within the cryptocurrency sector, havingsecured over $2.5 billion from various cryptocurrency platforms to date.
The Attorney General's office had previously filed a lawsuitin October 2023, accusing Genesis of hiding more than $1.1 billion in lossesfrom investors. This lawsuit was expanded in February to include additionalallegations of fraud involving Genesis and related entities. Under the terms ofthe settlement, Genesis does not admit to any wrongdoing, and the lawsuit willcontinue against other defendants, including Digital Currency Group, Inc. andits 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, 2024Victims' Fund Set Up to Compensate Creditors
The newly established Victims' Fund will distribute the remainingassets from Genesis' estate to compensate creditors. If creditors are not fullyreimbursed based on current digital asset values, the fund may receive up to $2billion from Genesis' assets to cover losses.
Attorney General James encourages New Yorkers affected bydeceptive practices in virtual asset markets to report these issues to heroffice and urges industry workers who have witnessed misconduct to filewhistleblower complaints, which can be done anonymously.
This article was written by Tareq Sikder at www.financemagnates.com.
