Certain New York residents who were 'victims', will get paid thanks to a new settlement. A victims fund will be established to help those people who lost money.

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New York Attorney General Letitia James worked to secure a settlement for New Yorkers who were defrauded by cryptocurrency firms Genesis Global Capital, LLC, Genesis Asia Pacific PTE, LTD., and Genesis Global Holdco, LLC. The $2 billion settlement will be used to create a victims fund to help defrauded investors. The victims include at least 29,000 New York residents. It is the largest settlement against a cryptocurrency company in state history. Attorney General James said,

“When investors suffer losses because of fraud and manipulation, they deserve to be made whole. This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice. Once again, 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, and that is something my office will always act to achieve.”

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Attorney General James had to get bankruptcy court approval for the settlement. She claims that Genesis defrauded its investors. In October of 2023, Attorney General James filed a lawsuit against Genesis and other defendants claiming that the companies concealed more than $1.1 billion in losses from investors in an investment program called “Gemini Earn.” Genesis neither admits nor denies any wrongdoing.

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Gallery Credit: Maria Danise

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