In a landmark decision, New York Attorney General Letitia James successfully brokered a $2 billion settlement with cryptocurrency firm Genesis Global Capital. This settlement is the largest of its kind in New York history. The settlement aims to compensate thousands of investors who suffered losses due to illegal practices.
The biggest cryptocurrency deal took place!
New York Attorney General Letitia James entered into a settlement with Genesis Global Capital, LLC and its related entities. This settlement stems from allegations of significant financial mismanagement and deception. According to the New York Attorney General’s Office, Genesis concealed investor losses of over $1.1 billion. He did this through the Gemini Earn investment program, together with other defendants. The settlement not only provides monetary compensation, but also prohibits Genesis from operating in New York, ensuring the firm cannot cause further damage. Attorney General Letitia James indicted Gemini Trust, Genesis Capital and Digital Currency Group in 2023. Accordingly, these firms orchestrated a fraud scheme worth $1.1 billion. Attorney General James said:
When investors suffer losses due to fraud and manipulation, they deserve to be compensated for their losses. This historic settlement is an important step towards ensuring that the victims who invested in Genesis receive some measure of justice. Once again, we are seeing the real world consequences and damaging losses that can occur due to the lack of oversight and regulation in the cryptocurrency industry. New York investors deserve the peace of mind that comes from a properly regulated market, and that’s something my office will always take action to achieve.
The agreement provides immediate relief to injured investors. It also helps create regulatory oversight in the market. The “Victims Fund” will directly benefit at least 29,000 New Yorkers who invested more than $1.1 billion in Genesis through the compromised Gemini Earn program. These investors will recover a significant portion of their losses. This is a move that not only brings justice but also restores some faith.
AG James leads robust crypto implementation
Attorney General Letitia James has led significant efforts to tighten regulations in the cryptocurrency industry. It has successfully implemented sanctions against major cryptocurrency platforms. Notably, he obtained over $22 million from KuCoin and $4.3 million from Coin Cafe due to regulatory violations. He also, along with a multi-state coalition, secured $24 million from Nexo for illicit operations. James has also taken legal action against high-profile organizations such as Celsius. In this regard, she directed unregistered crypto lending platforms to cease operations in New York.
The Victims Fund was established through a compromise between the Office of the Attorney General (OAG) and Genesis. This Fund will distribute payments from Genesis’ remaining assets after creditors’ initial bankruptcy claims are addressed. If these claims are not fully satisfied by the current values of the digital assets, the Fund will use up to $2 billion of Genesis’ remaining assets to fully offset creditors’ losses until the fund is used. cryptokoin.comAs you follow from , Genesis Global Capital previously agreed to pay $21 million to the SEC for securities violations related to its Gemini Earn program.
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