Genesis, a major crypto lender, has agreed to a $2 billion settlement to repay defrauded investors following its January 2023 bankruptcy. This landmark settlement, announced by New York Attorney General Letitia James, aims to provide justice to over 29,000 affected investors, primarily those involved with the Gemini Earn program. The court-approved repayment plan prioritizes dollar creditors over crypto creditors, ensuring dollar-denominated debts are refunded first. This settlement highlights the need for stricter oversight and regulation in the cryptocurrency industry.
Despite the legal battle with DCG and Gemini, Genesis will create a victims fund to aid the affected investors and is banned from operating in New York. Refunds will commence in May, with a structured multi-phase process to allocate resources to creditors.
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