New York Attorney General Letitia James announced a $2 billion settlement with crypto firms on Monday. It will help investors and nearly 30,000 New Yorkers. They’re to be compensated for alleged fraud.
The settlement includes Genesis Global Capital. It also includes Genesis Asia Pacific PTE and Genesis Global Holdco. They were accused of concealing $1 billion in losses. The case later added Digital Currency Group and Genesis for a $2 billion fraud.
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James stated that fraud victims deserve compensation.
She noted the industry’s unchecked nature. She added New York investors need a regulated market. Her office plans to use Genesis’ assets to create a Victims’ Fund. This will happen after settling the firm’s bankruptcy terms. The 29,000 affected New Yorkers invested over $1 billion in Genesis through the Gemini Earn program, the AG’s office said.
This is the biggest New York settlement with a crypto firm. It also bars Genesis from New York. The deal needs bankruptcy court approval. Genesis hasn’t admitted guilt. Genesis filed for bankruptcy in January 2023. It paused its activities, aiming to resolve issues for its clients.
A judge approved a plan to return $3 billion to customers on Friday, Reuters reported.
A Genesis spokesperson told Newsweek they wouldn’t comment much. The interim CEO, Derar Islim, said they aimed to quickly distribute funds. He emphasized that the firm’s creditors would receive assets they had loaned, rather than just a cash conversion.