Letitia James Announces $2 Billion Settlement for 29,000 New Yorkers

source: Newsweek **NEW YORK, May 20, 2024** – New York Attorney General Letitia James announced on Monday a groundbreaking $2 billion settlement with several cryptocurrency companies. This move is set to aid investors, including nearly 30,000 New Yorkers, in recouping their losses from alleged fraud by these businesses. Details of the Settlement The settlement involves Genesis Global Capital, Genesis Asia Pacific PTE, and Genesis Global Holdco, which were accused by James' office of concealing over a billion dollars in losses from investors. The case, initially targeting these entities, expanded earlier this year to include the Digital Currency Group and Genesis's top executives, alleging they defrauded investors of $2 billion. "When investors suffer losses because of fraud and manipulation, they deserve to be made whole," James stated. "We see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry. New York investors deserve the peace of mind that comes from a properly regulated marketplace." Impact on New York Investors According to the Attorney General's office, a Victims' Fund will be established, financed by Genesis' assets once the company's bankruptcy proceedings conclude. "If those creditors are not made whole based on today's digital asset values, the Victims' Fund will receive up to $2 billion from Genesis' remaining assets," the statement noted. The fund aims to fully compensate creditors for their actual losses until it is depleted. The 29,000 affected New Yorkers had invested over $1 billion in Genesis through the Gemini Earn investment vehicle. This substantial settlement underscores the significant impact on local investors and the state's commitment to safeguarding their interests. #### A Landmark Legal Victory James' office described the settlement as the largest against a cryptocurrency firm in New York. Beyond financial restitution, the agreement bars Genesis from operating within the state, marking a significant regulatory action against the firm. However, the settlement awaits approval from the bankruptcy court, and Genesis has not admitted guilt. "Under this settlement, Genesis neither admits nor denies the allegations of this lawsuit, and the suit will continue against the remaining defendants, as well as Genesis' former business partner, Gemini Trust Company, LLC," the AG's office confirmed. Broader Implications This settlement highlights the ongoing challenges and regulatory gaps within the cryptocurrency industry. The Attorney General's proactive stance aims to set a precedent for increased oversight and accountability, reflecting broader concerns about fraud and investor protection in the rapidly evolving digital asset market. Follow Miss Knockout for More Updates Stay updated on this and other significant stories by following Miss Knockout.