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Genesis Global Capital, LLC, Genesis Asia Pacific Pte. Ltd., and Genesis Global Holdco, LLC (collectively, “Genesis”) today announced that they have entered into a settlement agreement with the New York State Office of the Attorney General (“NYAG”). The settlement agreement relates to a lawsuit (the “NY Action”) filed by NYAG against Genesis, Gemini Trust Company, LLC, Digital Currency Group, Inc., Soichiro Moro (a.k.a. Michael Moro), and Barry E. Silbert in October 2023, which lawsuit alleges, among other things, that the defendants engaged in fraudulent practices to defraud investors and failed to properly register securities, and seeks a variety of relief including restitution on behalf of Genesis creditors.
Under the settlement agreement, without admitting or denying the settled claims as to Genesis, Genesis agrees that NYAG shall have an allowed general unsecured claim against each Genesis entity in its chapter 11 case, in an aggregate amount equal to the difference between Genesis unsecured creditors’ aggregate claims on an in-kind basis and the value distributed to such creditors by Genesis in the chapter 11 cases. Importantly, NYAG has agreed under the settlement agreement that (a) its claim will be paid after all other allowed administrative expense, secured, priority, and general unsecured claims, subject to limited exceptions set forth in the settlement agreement, and (b) any payments that it receives on its allowed claim will be distributed to Genesis creditors as part of a victims fund. NYAG will maintain its claims against the other defendants in the NY Action.
The settlement agreement, which remains subject to bankruptcy court approval in the Genesis chapter 11 cases, is the product of months of negotiation between Genesis and NYAG. Genesis is pleased to reach a settlement that avoids the need for costly litigation, provides Genesis creditors with the benefit of any payment to NYAG, and allows Genesis to focus its resources on obtaining confirmation of its chapter 11 plan and on beginning to make distributions to creditors.
Genesis is a premier institutional digital assets financial services firm providing a single access point for select qualified individuals and global institutional investors. Genesis combines best-in-class client service, unrivaled operational excellence and a seamless user experience to provide investors with a full suite of services to manage their portfolios.
The firm offers sophisticated market participants an integrated platform to trade digital assets, creating pathways to benefit from market opportunities while increasing capital efficiency for counterparties.
For more information on Genesis, please visit genesistrading.com.
FGS Global for Genesis[email protected]