June 4, 2024
New York AG Genesis settlement
Latest Cryptocurrency News

New York AG Secures $2 Billion Settlement with Genesis

Settlement Announcement

On May 20, New York Attorney General Letitia James announced a $2 billion settlement with cryptocurrency firm Genesis. This settlement aims to compensate defrauded investors. The New York AG stated that a bankruptcy court approved the agreement involving Genesis Global Capital, Genesis Asia Pacific, and Genesis Global Holdco. As part of the settlement, Genesis must return funds to investors and is banned from operating in New York.

Accusations Against Genesis

Attorney General James accused Genesis of deceitful practices, claiming the firm had been “lying and cheating investors” who had contributed over $1.1 billion through the Gemini Earn program. While Genesis has not directly responded to these allegations, a spokesperson pointed to a statement made on May 17. Genesis interim CEO Derar Islim expressed relief at the court’s approval of their bankruptcy plan and the New York AG settlement. “Our goal throughout this process has been to maximize value for all creditors,” Islim noted.

Ongoing Legal Actions

The lawsuit against Genesis, started by the New York AG in October 2023, has expanded to include the Digital Currency Group, its CEO Barry Silbert, and former Genesis CEO Soichiro Moro. While the recent settlement resolves issues specifically with Genesis, James confirmed that legal actions against the other defendants and the Gemini Trust Company would continue. This settlement is part of a broader series of lawsuits by the New York AG’s office against cryptocurrency firms in the state.

Genesis and More

The Genesis case is the latest in a series of legal actions by the New York AG targeting the cryptocurrency sector. Previous actions include a lawsuit against KuCoin for operating as an unregistered exchange, resulting in a $22 million settlement, and a lawsuit against former Celsius CEO Alex Mashinsky, who faces multiple fraud charges. These cases highlight the New York AG’s commitment to holding cryptocurrency firms accountable and protecting investors within the state.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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