Bankruptcy judge approves Genesis Global's plan to repay $3 billion to creditors and crypto customers

A bankruptcy court judge has approved a plan by cryptocurrency lender Genesis Global to return about $3 billion to its creditors and investors, including thousands of people New York regulators say the company defrauded.

ALBANY, N.Y. — A bankruptcy court judge has approved a plan by cryptocurrency lender Genesis Global to return about $3 billion to its creditors and investors, including thousands of people New York regulators say the company defrauded.

The plan and settlement approved Friday by Judge Sean H. Lane include up to $2 billion to settle a lawsuit by New York Attorney General Letitia James, who said the company misled investors about the risks of putting their money into a business program known as Gemini Earn. .

“This historic settlement is an important step in ensuring that the victims who invested in Genesis have some semblance of justice,” James said in a statement Monday. “Once again, we are seeing the real-world consequences and damaging losses that can occur due to a lack of oversight and regulation within the cryptocurrency industry.”

Creditors whose claims are denominated in U.S. dollars will receive 100% of their loan balances from the company, which filed for bankruptcy last year. Those with cryptocurrency claims will experience a shortage, according to the decision.

The settlement includes a victim fund for Genesis' creditors to help recover some of their losses, James' office said.

“We look forward to implementing the plan and delivering benefits as quickly as possible,” Derar Islim, CEO of Genesis Interim, said in a statement on Friday.

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