New Yorkers Who Lost on Crypto Will Receive Big Settlement Checks

If you invested in cryptocurrency and lost your shirt New York State has your back.

Three firms dealing in cryptocurrency have agreed to pay New Yorkers $2 billion after being sued by the Attorney General's office over alleged fraud.

Some have heralded cryptocurrency as a way to increase their net worth, while others have been more critical, calling it a junk investment like Beanie Babies with no actual value. Whatever you think, cryptocurrency is here to stay and many New Yorkers are investing their hard-earned money in it.

Relief For New Yorkers Who Lost on Crypto

According to New York State Attorney General Letitia James, a fund has been set up for almost 30,000 New Yorkers who lost money on their investments. James sued Genesis Global Capital, Genesis Asia Pacific PTE and Genesis Global Holdco for allegedly hiding losses from investors that totaled over one billion dollars. Officials contend that the company's deceptive practices defrauded New Yorkers out of $2 billion.

Due to the terms of the settlement, Genesis does not admit or deny any of the allegations. However, New York is still pursuing its lawsuit against the remaining defendants who James says concealed more than $1.1 billion in losses in an attempt to fool investors into participating in a losing investment called "Gemini Earn".

How Will Victims Receive Their Settlement Cash?

According to the Attorney General, assets that remain after Genesis' bankruptcy will be distributed to the Victims’ Fund. If this doesn't cover the amount agreed to in the settlement, New York will receive up to $2 billion from the company's remaining assets.

Once the fund has received all of the money, New York will send out checks to compensate victims for the "fair and full amounts of their actual losses.