- In order to assist those who were duped by Gemini Earn, the New York State Attorney General (AG) mediated a $2 billion deal with Genesis Global.
- The crypto exchange Gemini, the lending company Genesis, and the investing behemoth Digital Currency Group (DCG) were all sued by New York State Attorney General Letitia James this winter on charges that they had sought to hide $1.1 billion in losses and had “repeatedly lied” to its investors.
James increased the stakes to $3 billion earlier this year in an amended complaint because additional investors came forward following the lawsuit’s first release, causing the AG’s office to reassess its initial estimate.
Then, yesterday, a US bankruptcy judge greenlit Genesis Global’s liquidation plan to refund approximately $3 billion to its creditors.
Investors who lose money as a result of deception and manipulation ought to be compensated. A significant step in ensuring that the victims who invested in Genesis receive some sort of justice is this historic settlement.
Once more, we witness the negative outcomes and real-world repercussions that might result from a lack of supervision and control in the bitcoin sector.
My office will always work to ensure that investors in New York have the peace of mind that comes from a properly regulated marketplace.
If the bankruptcy court approves the settlement, DCG creditors will have access to a “Victims’ Fund.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
