Genesis settles with Attorney General as bankruptcy rumbles on

CRYPTOCURRENCY lending platform Genesis Global today settled a lawsuit with New York Attorney General Letitia James.

The company, which Gemini Trust last week confirmed had filed for bankruptcy, was sued by James along with Gemini and its parent company Digital Currency Group in October. She alleged the firms had defrauded investors out of more than one billion dollars.

She claimed the fraud had been enacted through its Gemini Earn investment program, which allowed users of Gemini to lend their digital assets to Genesis while earning interest from the loan.

The as yet undisclosed settlement is now awaiting approval from the US Bankruptcy Court.

Yesterday, Genesis Global held a hearing with the Bankruptcy Court for the Southern District of New York as it sought to authorise a sale of assets and the subsequent green light to monetise its interests in Grayscale Ethereum trusts. If approved, it is understood a motion will seek authority to monetise 30,905,782 Grayscale Bitcoin Trust shares.

The company has also put in place a liquidation plan designed to reimburse customers of its now defunct Gemini Earn product after settling a separate lawsuit with the US Securities and Exchange Commission last week, agreeing to a $21m fine.