Crypto Lending Firm Genesis Reaches $2 Billion Settlement with Regulators
PANews reported on May 20 that New York Attorney General Letitia James announced a $2 billion settlement with cryptocurrency lending firm Genesis to compensate defrauded investors. Genesis, once a core business of Digital Currency Group (DCG), filed for Chapter 11 bankruptcy protection in January 2023 due to the industry chain reaction triggered by the collapse of FTX. In October, James filed a lawsuit against DCG, its subsidiary Genesis, and Gemini Trust, accusing them of misleading investors in the Gemini Earn program, resulting in losses exceeding $1 billion. The settlement prohibits Genesis from operating in New York and establishes a victim fund benefiting over 29,000 New York residents who invested in Genesis through the Gemini Earn product.
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