NY Attorney General Warns Crypto Firms After $2B Genesis Settlement
The Bottom Line
Letitia James, the Attorney General of New York, recently issued a stern warning to crypto companies: they must abide by the same rules as everyone else. This statement followed a settlement with the bankrupt crypto company Genesis for 2 billion dollars. James emphasizes that her office will take action against those companies that do not comply with the rules.
The Genesis Settlement: A Turning Point?
The settlement with Genesis, a subsidiary of the Digital Currency Group (DCG), represents a significant moment in the regulation of the crypto sector. Genesis had previously received court confirmation for a payout of about 3 billion dollars, which excluded DCG from claims. The Genesis case was particularly scrutinized as the company was accused of defrauding investors and concealing losses of over 1.1 billion dollars resulting from risky loans.
The Importance for New York Investors
It is particularly noteworthy that among the victims of the Genesis case were around 29,000 New Yorkers. The 2 billion dollar settlement aims to offer these investors a form of justice. This case underscores the need for stronger oversight and regulation within the crypto industry to protect investors.
Stricter Regulation as a Solution
The New York Attorney General has in the past already enforced several penalties and settlements against various crypto firms, including Kucoin. The settlement with Genesis reinforces this line and signals a continued strict monitoring of crypto companies that operate outside of regulatory norms. However, the debate about clear regulation in the US continues, with the hope that the FIT21 Act, if passed by the US Senate, could provide more clarity.
Our Assessment
The warning from Letitia James to crypto companies is a clear signal that the “Wild West” era in the crypto industry could be coming to an end. The settlement with Genesis shows that regulatory authorities are willing to actively intervene and protect investors. For the crypto industry, this means that it must prepare for a future with stricter rules. This could contribute to the long-term legitimization and stabilization of the market, but it requires companies to adjust their business practices and provide more transparent communication.
Sources: AMBCrypto, Benjamin Njiri, Saman Waris
The 3 best crypto casinos
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 14 days for deposit bonus |
| 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Gates of Olympus or Book of Ra Deluxe.
| Wagering requirements | 40x deposit + bonus |
| 40x free spins winnings | |
| Minimum deposit | 0.00034 BTC or equivalent |
| Maximum bet | 0.00003 BTC or equivalent |
| Bonus validity | 30 days to claim |
| 14 days to wager |
- Minimum deposit: 0.048 BCH • 0.0068 ETH • 0.26 LTC • 154 DOGE • 20 USDT • 40 XRP • 180 TRX • 48 ADA • 0.04 BNB • 20 BUSD • 20 USDC.
- Maximum bet per round: 0.005 BCH • 0.0007 ETH • 0.03 LTC • 15 DOGE • 2 USDT • 4 XRP • 19 TRX • 4.8 ADA • 0.004 BNB • 2 BUSD • 2 USDC.
- Free spins are credited on “Max Miner” by Gamebeat, 20/25 free spins per a day.
| Wagering requirements | 40x bonus |
| Minimum deposit | 0,1 mBTC |
| Maximum bet | $5 per spin |
| Bonus validity | 7 days to wager |
- There is no cap on winnings or withdrawals.
Advertising transparency