The New York Attorney General's office announced Monday that it has secured a $2 billion settlement with Genesis, the crypto lender owned by the Digital Currency Group (DCG), to repay users affected by its 2023 bankruptcy filing.
The plan was approved late Friday, and will apparently reimburse users for approximately 77% of the crypto funds they had provided the firm in exchange for yield, according to the Wall Street Journal.
“When investors suffer losses because of fraud and manipulation, they deserve to be made whole,” said New York Attorney General Letitia James. “This historic settlement is a major step toward ensuring the victims who invested in Genesis have a semblance of justice."
Genesis filed for bankruptcy in January 2023 after being battered by other, related crypto collapses, including the sudden shutdown of prominent crypto exchange FTX and crypto hedge fund Three Arrows Capital.
Over the last year-plus, the firm and parent DCG have engaged in a public battle against crypto exchange Gemini, a former Genesis partner, over some $900 million owed to Gemini customers via its Gemini Earn lending platform.
As a settlement neared, Genesis gained approval in February to sell some $1.6 billion worth of shares in the Greyscale Bitcoin Trust (GBTC) and other Grayscale crypto products. The firm also agreed to a $21 million settlement with the U.S. Securities and Exchange Commission (SEC) to settle charges, though the agency will only be paid after creditors.
Gemini itself agreed in February to fully repay its Earn program customers a total of $1.1 billion, while also paying the New York AG a $37 million fine.
Editor's note: This story was updated after publication with additional details.