$2 Billion Settlement Marks Historic Crypto Regulation Win in New York

On May 20, 2024, Genesis Global Capital, LLC, including Genesis Asia Pacific PTE, LTD., and Genesis Global Holdco, LLC, agreed to a $2 billion settlement, the largest ever against a cryptocurrency company in New York’s history. This settlement responds to allegations that Genesis concealed over $1.1 billion in losses from investors, many of whom participated in the Gemini Earn program.

The settlement establishes a victims fund aimed at assisting at least 29,000 New Yorkers who collectively invested more than $1.1 billion through Gemini Earn, providing some restitution for those affected by opaque management and misrepresentations.

The ongoing lawsuits have expanded to include Digital Currency Group, Inc., and prominent individuals linked to Genesis, accused of defrauding investors out of an additional $2 billion. Legal claims also continue against Gemini Trust Company, LLC, indicating deeper scrutiny within the crypto ecosystem.

New York Attorney General Letitia James highlighted the importance of this settlement as a critical step towards increased oversight and regulation within the cryptocurrency space. This follows prior regulatory recoveries by her office, including $22 million recovered from KuCoin in December 2023 and $24 million from Nexo in January 2023 for operating illegally.

For investors looking to navigate crypto investments responsibly in this evolving regulatory environment, platforms like Bitlet.app offer innovative options such as Crypto Installment services. Bitlet.app enables users to buy cryptocurrencies now and pay monthly, providing a safer, more manageable way to enter the market without exposing oneself to lump-sum risks amid regulatory uncertainties.

Stay informed about the latest crypto regulation news and explore responsible investing with Bitlet.app to take advantage of flexible crypto buying options.