New York Attorney General Letitia James announced on Monday a $2 billion settlement with the bankrupt cryptocurrency firm Genesis Global, following allegations of defrauding investors, including tens of thousands of New Yorkers.

This marks the largest settlement against a crypto company in New York history and aims to compensate misled investors. The agreement includes the establishment of a Victims' Fund to aid those affected by Genesis' actions and prohibits the company from operating in New York state.

AG James emphasized the importance of holding fraudsters accountable and ensuring justice for investors. The Victims Fund will benefit 29,000 New Yorkers who invested over $1.1 billion through the Gemini Earn investment program and will be funded through Genesis' remaining assets after creditors receive their initial payouts. If creditors are not fully compensated, the fund will receive up to $2 billion from Genesis' remaining assets.

This settlement follows AG James' efforts to increase oversight and regulation in the cryptocurrency industry, including a lawsuit against Gemini, GenesisTrading, and DCGco in October 2023 for defrauding investors of over $1 billion. Genesis filed for Chapter 11 bankruptcy in 2023, leading to customer withdrawal freezes, and recently received court approval to return $3 billion to its customers.