The Genesis $2 billion Settlement – What You Need To Know
Genesis, a crypto lender, has reached a $2 billion settlement to repay defrauded investors after filing for Chapter 11 bankruptcy in January 2023. This settlement follows the collapse of FTX, a major player in the crypto industry, which triggered the bankruptcy.
Genesis Agrees to $2B Settlement
New York Attorney General Letitia James recently announced the $2 billion settlement, emphasizing its importance in providing justice to victims. The lawsuit accused Genesis of misleading investors about the Gemini Earn program, resulting in over $1 billion in losses initially, which later expanded to allege an additional $2 billion in fraud.
- The bankruptcy court approved Genesis’s Chapter 11 repayment plan, including the settlement with James’s office.
- The settlement, the largest ever against a crypto firm in New York, includes the creation of a victims fund to assist the 29,000 affected individuals.
- Investors who utilized Gemini Earn to earn returns of up to 7.4% APY are among those affected.
Refunds to Start in May
Investors can expect to start receiving refunds from May onwards as per the court-approved repayment plan. The process involves multiple phases to allocate resources to creditors, with dollar creditors receiving 100% of their value first, followed by crypto creditors receiving the remaining assets.
- Priority is given to dollar-denominated debts over crypto-denominated ones, ensuring a fair distribution of resources.
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