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On Monday, New York Attorney General Letitia James announced that her office has secured a $2 billion settlement with the bankrupt cryptocurrency firm Genesis Global.In a post on social media platform X, AG James revealed that this is the largest settlement against a crypto company in New York history. It aims to compensate investors who were allegedly misled and defrauded by Genesis.the creation of a Victims’ Fund designed to aid investors misled by Genesis.
“When investors suffer losses because of fraud and manipulation, they deserve to be made whole,” said AG James. “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,” she added.
The Victims Fund will benefit the 29,000 New Yorkers who invested over $1.1 billion through the Gemini Earn investment program. It will be financed through distributions from Genesis’ remaining estate assets after the company’s creditors receive their initial bankruptcy payouts. If the creditors are not fully compensated based on the current values of digital assets, the fund will receive up to $2 billion from Genesis’ remaining assets. This money will then be distributed to compensate the creditors for their actual losses until the fund is exhausted.The settlement continues Attorney General James’ efforts to increase oversight and regulation in the cryptocurrency industry.
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