In a significant development, Genesis has agreed to pay $2 billion to investors defrauded by the Gemini Earn program. This settlement, announced by New York AG Letitia James, is a major step in resolving the fallout from Genesis’s bankruptcy.
In a major development following its bankruptcy, crypto lender Genesis has agreed to a $2 billion settlement to compensate defrauded investors. This agreement comes after Genesis filed for Chapter 11 bankruptcy in January 2023, a move triggered by the collapse of FTX. New York Attorney General Letitia James announced the settlement, highlighting its importance in delivering justice to those affected. The lawsuit accused Genesis, along with DCG and Gemini, of misleading investors about the Gemini Earn program, which led to over $1 billion in initial losses and an additional $2 billion in fraud claims.
The bankruptcy court approved Genesis's Chapter 11 repayment plan, which includes this historic settlement. This is the largest settlement ever imposed on a crypto firm in New York. The settlement will create a victims fund to assist 29,000 New Yorkers who were promised returns of up to 7.4% APY through Gemini Earn. Additionally, Genesis is prohibited from operating in New York.
