Breaking: Genesis Settles for $2 Billion with NY Attorney General

Genesis Global Holdco has agreed to a $2 billion agreement with the New York State Attorney General’s office. This decision comes after long negotiations that emerged from accusations of misguiding financial transactions related to Genesis’s operations.

The settlement, which must be approved by a bankruptcy court due to Genesis’ bankruptcy status, is a landmark in the regulatory landscape for cryptocurrency businesses.

Genesis Settlement with NY Attorney General

Genesis’s settlement deal with the New York Attorney General, Letitia James, is one of the biggest in the state’s history of cryptocurrency regulation.

According to the terms of the agreement, the firm will establish a victim fund to pay damages to New York investors who have lost money with the Gemini Earn program. This proceeds fund will pay up to $2 billion from Genesis’ remaining assets to the affected creditors.

The firm entered bankruptcy in January 2022 after waves of industry failures, such as Three Arrows Capital and the FTX exchange, caused the company to collapse. The settlement does not include the firm’s admission of guilt but permits the legal proceedings to be continued against the other involved parties, such as Gemini Trust Company, LLC.

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