Cryptocurrency lending company Genesis Global said it may be forced to make loans that do not involve it due to a civil fraud lawsuit filed by New York State Attorney Letitia James against Genesis Global, its parent company Digital Currency Group (DCG) and former partner Gemini Trust Co. Insolvency liquidation of claims against DCG.
Previously, the three crypto companies were accused of defrauding investors of more than $1 billion over the jointly operated investment project Gemini Earn. Genesis plans to propose a “no deal” bankruptcy plan that would distribute existing crypto assets to customers and establish a process to preserve litigation rights against DCG and other parties. (Reuters)