In a critical decision, a New York bankruptcy judge gave the green light to a $2 billion settlement between the New York State Attorney General's Office and crypto lender Genesis.
The approval comes several months after Genesis filed a petition in the U.S. Bankruptcy Court for the Southern District of New York seeking Judge Sean Lane's approval of the settlement.
New York Attorney General Letitia James expressed her satisfaction with the result in her statement today. “When investors suffer losses due to fraud and manipulation, they deserve to be compensated,” James said.
“This historic settlement is an important step towards ensuring that victims who invested in Genesis have a piece of justice.”
The settlement, the largest settlement against a crypto firm in state history, includes a victim fund designed to assist New York investors who contributed more than $1.1 billion to Genesis through its Gemini Earn program.
The lawsuit was first filed by Attorney General James against Bitcoin exchange Gemini, Genesis, and later its parent company, Digital Currency Group, over Gemini's cryptocurrency lending program. Genesis and Gemini offered the program to individual investors in 2021 and promised the opportunity to earn returns of up to 7.4 percent.
*This is not investment advice.
