New York Attorney General Letitia James has secured a $2 billion settlement with bankrupt cryptocurrency firms Genesis Global Capital, Genesis Asia Pacific, and Genesis Global Holdco. The settlement, which requires bankruptcy court approval, will establish a victims’ fund to compensate over 29,000 New Yorkers who invested more than $1.1 billion through the Gemini Earn program. This is the largest settlement against a cryptocurrency company in state history.
The lawsuit, filed in October 2023, accused Genesis of concealing $1.1 billion in losses. Expanded in February 2024, it included additional defendants and an extra $2 billion in defrauded funds. The settlement bans Genesis from operating in New York and does not require Genesis to admit or deny the allegations. The lawsuit continues against other defendants.
