Genesis said the New York State Attorney's lawsuit could lead to its "unresolvable" bankruptcy liquidation.
According to a report by BlockBeats on October 25th, cryptocurrency loan company Genesis Global has stated that it may be forced to undergo bankruptcy liquidation due to a civil fraud lawsuit filed by New York State Attorney General Letitia James against Genesis Global, its parent company Digital Currency Group (DCG), and former partner Gemini Trust Co. The lawsuit does not involve any claims against DCG.
Previously, these three cryptocurrency companies were accused of defrauding investors of more than $1 billion through their jointly operated investment project, Gemini Earn. Genesis plans to propose a "no settlement" bankruptcy plan, where existing cryptocurrency assets will be distributed to customers and a process will be established to retain the right to sue DCG and other parties.