Genesis was a leading institutional investor in cryptocurrencies and part of the Digital Currency Group (DCG), which backed the
"Earn Out
" programs of many companies, including #Gemini Exchange.
However, after the collapse of #Terra in 2022 and the collapse of companies like Three Arrows Capital, Genesis faced liquidity problems and customer frustration; in January 2023, the company filed for bankruptcy; in May, Genesis won a trial to recover $3 billion from customers, and then the New York State Attorney General reached a $2 billion settlement with Letitia James.
The U. S. Securities and Exchange Commission (SEC) also sued Genesis and Gemini for allegedly selling unregistered securities through Gemini Earn. In a separate settlement, Genesis agreed to pay $ 21 million to the regulator.
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