NYAG
As part of the settlement, Gemini is banned from operating crypto lending programs in New York.
The distributions mark a 232% recovery from when withdrawals were halted in November 2022
NYAG announced details about its settlement with bankrupt lender Genesis on Monday
DCG and Silbert said the suit was an attempt to find a “headline-worthy scapegoat”
Gemini “failed to prevent harm suffered by Earn program customers,” according to a NYDFS statement
The hearings are expected to last for a couple of days as the court hears arguments for and against the bankruptcy plan proposed by Genesis
The parent company of bankrupt lender Genesis filed an objection to its settlement agreement with the NYAG on Wednesday
James’ office initially sued Gemini, DCG, CEO Barry Silbert and subsidiary Genesis in October
The bankrupt crypto lender’s settlement proposal comes after it agreed to pay a possible $21 million as part of an agreement with the SEC last week
KuCoin CEO Johnny Lyu said the settlement shows the exchange’s “commitment to compliant operations”
In its third quarter shareholder letter, DCG gave updates on Grayscale, the NYAG suit and the Genesis creditor plan
CoinEx agreed to settle with the New York Attorney General’s office after being accused of failing to register as a securities and commodities broker-dealer
Today’s negative move across the crypto markets is likely a function of several factors, including regulatory risk pricing, Silvergate’s closure and enforcement actions, analysts say
New York Attorney General Letitia James has also called on spurned crypto investors to reach out, signaling potential enforcement actions
On the surface this program would appear to contradict terms set out in Tether’s user agreement, but Tether said that the over-collateralization of such loans wouldn’t be a problem