NYAG Takes Victory Lap as Court Approves Genesis Settlement
A New York state court has approved a $2 billion settlement with bankrupt cryptocurrency lender Genesis. The New York Attorney General (NYAG) sued Genesis, Gemini, and Digital Currency Group in October 2023 for allegedly defrauding over 230,000 investors of more than $1 billion. The NYAG claimed that Gemini knew Genesis' loans were undersecured and concentrated with Alameda Research but did not disclose this to investors. As part of the settlement, Genesis will be blocked from doing business in New York. Genesis announced earlier this week that it would return $3 billion worth of customer assets, about 77% of the value of customer claims, as part of a court-approved bankruptcy liquidation plan. A Victims' Fund will receive up to $2 billion from Genesis' remaining assets after initial bankruptcy distributions to compensate creditors for their remaining losses.
