Bankrupt cryptocurrency brokerage firm, Genesis Global Capital, has agreed to repay its creditors $2 billion in cash and digital assets in what the New York Attorney General’s office has characterized as the largest such agreement in the state’s history.
Attorney General Letitia James stated that the settlement brings a degree of justice to the victims who invested in Genesis and underscores the real-world losses that can occur due to the lack of oversight and regulation within the cryptocurrency industry. New York investors, she emphasized, deserve a regulated marketplace, and this is something her office is committed to achieving.
The settlement resolves a lawsuit filed by James’ office in the state Supreme Court of Manhattan in October. It establishes a victims’ fund for Genesis’ creditors, with the firm neither admitting or denying the allegations.