New York’s attorney general has reached a $2 billion settlement with the bankrupt cryptocurrency finance company Genesis Global for allegedly defrauding thousands of investors.
Genesis, which filed for Chapter 11 bankruptcy in the United States in January 2023, has received court approval to return around $3 billion in cash and cryptocurrencies to customers in liquidation.
“We are once again seeing the consequences and costs of a lack of oversight and regulation in the crypto industry,” stated New York Attorney General Letitia James.
James announced the establishment of the Gemini Earn Plan through the settlement to help defrauded investors, including more than 29,000 New Yorkers who allegedly invested over $1.1 billion in Genesis. This settlement represents the largest ever reached by New York state with a cryptocurrency company.
“Investors who have suffered losses from fraud or manipulation should be compensated,” James emphasized. “This historic settlement is a significant step towards achieving justice for Genesis investors.
James initially sued Genesis in October of last year, claiming the company hid losses from investors who provided digital assets through GeminiEarn. In the settlement, Genesis neither admitted nor denied the charges.
Genesis was among several cryptocurrency companies affected by the collapse of FTX, one of the world’s largest exchanges.
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“New York investors deserve the peace of mind that comes from a properly regulated market,” she added.
Source: www.theguardian.com
