New York Attorney General Letitia James has unveiled a landmark settlement with the cryptocurrency firm Genesis Global, marking the state's largest-ever agreement with a crypto company. The $2 billion settlement aims to compensate investors who were allegedly defrauded by Genesis, including tens of thousands of New Yorkers.

AG James announced the $2 billion settlement in a social media post, highlighting its significance as the largest settlement against a crypto company in New York's history. The settlement is intended to provide restitution to investors who suffered losses due to fraud and manipulation by Genesis.

As part of the settlement, Genesis has agreed to establish a Victims' Fund to assist investors who were misled by the company. This fund will benefit approximately 29,000 New Yorkers who invested over $1.1 billion through the Gemini Earn investment program. It will be financed through distributions from Genesis' remaining estate assets after creditors receive their initial bankruptcy payouts.

AG James emphasized the importance of holding fraudulent actors accountable and ensuring that defrauded investors receive justice. She stated that the settlement represents a significant step towards addressing the real-world consequences of fraud and manipulation in the cryptocurrency industry.

The settlement with Genesis is part of AG James' ongoing efforts to increase oversight and regulation in the cryptocurrency sector. In October 2023, James filed a billion-dollar fraud lawsuit against Genesis, Gemini, and DCGco, accusing them of defrauding investors of over $1 billion.

The lawsuit highlighted the dangers posed by an unregulated crypto industry and aimed to hold companies accountable for misleading investors about the safety of their investments. AG James reiterated her commitment to protecting investors and ensuring accountability within the cryptocurrency industry.

The settlement with Genesis represents a significant victory for investors who were harmed by fraudulent practices and underscores the importance of regulatory oversight in safeguarding the integrity of financial markets.