CDS Crypto News Report: Genesis Resolves Fraud Lawsuit with NYAG
Crypto News

Report: Genesis Resolves Fraud Lawsuit with NYAG

Genesis Global Capital has reached a settlement with the New York Attorney General, redirecting funds from the resolution to reimburse Gemini Earn customers and other creditors, rather than allocating them to governmental bodies.

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Report Genesis Resolves Fraud Lawsuit With Nyag

Crypto News- Genesis Global Capital, a crypto lending company facing bankruptcy, has reportedly settled a lawsuit filed by New York Attorney General Letitia James. The suit, which alleged fraud involving over $1 billion, also implicated Gemini and Digital Currency Group (DCG).

According to Bloomberg’s Thursday report, the settlement aims to return assets to affected parties, including customers of Gemini Earn and other Genesis creditors, rather than surrendering them to state authorities.

Report: Genesis Resolves Fraud Lawsuit with NYAG

The agreement is pending approval from a bankruptcy judge. This development follows Genesis’s $21 million settlement with the U.S. Securities and Exchange Commission (SEC), where the firm denied any wrongdoing.

However, DCG, Genesis’s parent company, has voiced opposition to the restructuring plan, labeling it a “cramdown” that doesn’t meet bankruptcy legal standards. DCG’s lawyers argue that the plan unfairly favors certain creditors and overpays them, exceeding the amount they’re entitled to.

In a filing on February 6, DCG criticized the restructuring plan, alleging that it unlawfully seizes equity holder rights and benefits a select group of creditors while disadvantaging others.

Recent reports have also indicated that Genesis intends to sell $1.4 billion worth of shares in Grayscale Investments’ Grayscale Bitcoin Trust (GBTC), a move that signals the company’s efforts to address its financial challenges.

Report: Genesis Resolves Fraud Lawsuit With Nyag
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Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

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