The New York State Attorney General (AG) has reached a $2 billion settlement with Genesis Global to help those defrauded by Gemini Earn.
Last winter, New York State AG Letitia James sued the cryptocurrency exchange Gemini, the lender Genesis and the investment giant Digital Valuta Group (DCG) over allegations that the companies tried to hide $1.1 billion in losses and “repeatedly” their investors had lied.
Earlier this year, in an amended complaint, James raised the stakes to $3 billion as more investors came forward after the lawsuit’s initial announcement, forcing the AG’s office to revise their original number.
Yesterday, a US bankruptcy court gave the green light to Genesis Global’s liquidation plan to return approximately $3 billion to its creditors.
Today, New York State Attorney General James announced a $2 billion settlement with Genesis Global.
“When investors suffer losses due to fraud and manipulation, they deserve to be healed. This historic settlement is an important step in ensuring that the victims who invested in Genesis receive some semblance of justice. Once again we see the real world consequences and the damaging losses that can occur due to a lack of oversight and regulation within the cryptocurrency industry.
New York investors deserve the peace of mind that comes from a well-regulated market, and that is something my office will always strive to achieve.”
The settlement will create a “Victims Fund” for DCG creditors, pending bankruptcy court approval.
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