Bankrupt Crypto Lender Genesis Global Settles NY Fraud Lawsuit
- Settlement is structured to return funds to Genesis creditors
- Genesis will seek approval of a debt repayment plan on Feb. 14
Genesis Global Holdco LLC has settled a lawsuit brought by New York’s top law enforcement official alleging the bankrupt crypto lender defrauded customers of its now-terminated Gemini Earn program, which was run jointly with Gemini Trust Co.
The settlement with New York Attorney General Letitia James is structured so that assets that could have otherwise gone to state authorities will instead be returned to former Earn customers and other Genesis creditors. The deal must be approved by a bankruptcy judge and follows a settlement Genesis struck resolving a separate complaint over the Earn program brought by the US Securities and Exchange Commission.