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The New York Attorney General Letitia James has reached a $2 billion settlement with Digital Currency Group subsidiary Genesis.&nbsp;
According to a <a href="https://ag.ny.gov/press-release/2024/attorney-general-james-secures-settlement-worth-2-billion-crypto-firm-genesis" target="_blank" rel="noopener noreferrer nofollow">press release</a> from the Attorney General’s office, New York’s settlement with the crypto lender aims to reimburse creditors and demonstrates the “real-world consequences” caused by an apparent lack of oversight on digital assets and the crypto landscape.&nbsp;
Backed by Barry Silbert’s Digital Currency Group (DCG), Genesis was one of the largest crypto lenders and partnered with Gemini Exchange for a yield-bearing product called Gemini Earn.&nbsp;
In 2022, Genesis faced bankruptcy following the crash of Do Kwon’s Terraform blockchain ecosystem and the collapse of Sam Bankman-Fried’s FTX empire.&nbsp;This led to a public dispute with former business partner Gemini, which <a href="https://crypto.news/genesis-set-to-end-620m-lawsuit-with-digital-currency-group/" rel="noopener noreferrer nofollow">accused</a> Genesis of defrauding hundreds of thousands of Gemini Investors.&nbsp;
You might also like: <a href="https://crypto.news/new-york-ag-lawsuit-dcg-3-billion-genesis-settlement/" rel="noopener noreferrer nofollow"> New York extends lawsuit against DCG to $3b after Genesis settlement </a>
After the conflict, AG James <a href="https://crypto.news/gemini-genesis-dcg-slammed-with-1b-crypto-fraud-lawsuit/" rel="noopener noreferrer nofollow">sued</a> DCG, Genesis, and Gemini for $1 billion last October, alleging that the three parties deceived investors and operated without compliant disclosers for the Earn program.&nbsp;
<h2 class="wp-block-heading" id="settlement-terms">Settlement terms</h2>
As crypto.news <a href="https://crypto.news/bankrupt-lender-genesis-global-strikes-settlement-over-ny-fraud-claims/" target="_blank" rel="noopener noreferrer nofollow">reported</a>, James and her office sought $2 billion in a follow-up lawsuit with similar claims of violations. The settlement between New York and Genesis did not include Gemini and was previously approved by the bankruptcy court overseeing the firm’s Chapter 11 restructuring.&nbsp;
Furthermore, the agreement mandated a relief fund for nearly 30,000 residents believed to have deposited over $1 billion in the platform.&nbsp; The crypto lender is also banned from conducting business within New York’s borders.&nbsp;
According to the terms, Genesis neither denied or admitted claims made by AG James and the State of New York regarding fraud and investor manipulation. The company has also settled with U.S. Securities and Exchange alleging civil <a href="https://crypto.news/genesis-sec-settlement-gemini-earn-lawsuit/" rel="noopener noreferrer nofollow">misconduct</a> with Gemini Earn.
Read more: <a href="https://crypto.news/genesis-to-surrender-bitlicense-pay-8m-fine-in-nydfs-lawsuit/" rel="noopener noreferrer nofollow"> Genesis to surrender BitLicense, pay $8m fine in NYDFS lawsuit </a>

New York Attorney General concludes $2b Genesis settlement

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