Gemini

<p>Genesis Global was embroiled in a <a href="https://www.cryptopolitan.com/ripple-cto-predicts-sec-lawsuit-end-in-2024/">lawsuit </a>filed by New York Attorney General Letitia James, alleging fraud amounting to over $1 billion. The case centered around Genesis’ Gemini Earn program, which purportedly defrauded 230,000 investors, including 29,000 New York residents, by concealing associated risks.</p> 
<h2 class="wp-block-heading" id="settlement-reached-amid-bankruptcy-proceedings">Settlement reached amid bankruptcy proceedings</h2> 
<p>Despite denying wrongdoing, Genesis Global settled the allegations to bring closure to the legal saga. The agreement reached on Thursday, February 8, comes as Genesis navigates bankruptcy proceedings.&nbsp;</p> 
<p>The settlement, subject to approval by the Bankruptcy Court, is structured to prioritize the return of assets to former Earn customers and other creditors over fines payable to the state.</p> 
<p>Under the settlement terms, Genesis Global will cease operations in New York. While the exact financial terms remain undisclosed, it’s notable that the agreement does not entail Genesis admitting liability.&nbsp;</p> 
<p>The settlement also exclusively resolves allegations brought forth by the New York Attorney General’s Office, leaving other legal matters unaffected.</p> 
<h2 class="wp-block-heading" id="prioritizing-creditors-over-state-authorities">Prioritizing creditors over state authorities</h2> 
<p><a href="https://www.cryptopolitan.com/federal-court-decision-impacts-crypto/">Court</a> documents reveal that the settlement’s structure favors Genesis’ debtors over state authorities. While it remains unclear if Genesis will pay a fine to the NY AG, the agreement primarily focuses on maximizing recoveries for creditors.&nbsp;</p> 
<p>This approach aims to streamline the resolution process and avoid protracted litigation, thereby minimizing costs associated with legal proceedings.</p> 
<p>For Genesis Global, the settlement signifies a step towards winding down operations amidst bankruptcy proceedings. The decision to cease operations in New York reflects a strategic move to mitigate further legal risks and focus on fulfilling obligations to creditors. While the company maintains its innocence, the settlement allows it to move forward without the burden of ongoing litigation.</p>

Genesis Global settles with New York Attorney General in crypto fraud case

Table of Contents

Cryptopolitan_News

Other articles published on Feb 10, 2024

Bitcoin Surges Above $47,000, Sparks Excitement in Crypto Community

HT Will Become a Meme Token With No Actual Control By Anyone: Justin Sun

Paytm Mulls Shift To TPAP Mode To Ensure UPI Functionality Amid RBI Ban

What Is Monero (XMR) Network?

A mysterious crypto whale quietly accumulates $83 million in Link

HYFI 2024 Singapore: Beyond Boundaries: Web3, AI, and the Future of Technology

Join our free newsletter for daily crypto updates!