New York Attorney General Barbara Underwood reached a landmark settlement with bankrupt crypto lender Genesis, in which they agreed to return $2 billion worth of cryptocurrency back to creditors through Gemini Earn program lent through Gemini Earn. This agreement marks one of the largest-ever such deals against any crypto company.
US bankruptcy judge Sean Lane issued his ruling Friday that Genesis Global Capital should pay customer claims in cash instead of deferring to equity owner Digital Currency Group’s objection, clearing the way for it to return assets frozen when it suspended withdrawals last year.
What is Bitcoin?
Bitcoin is a digital currency that operates independently from banks or governments, instead relying on peer-to-peer software and cryptography. Transactions are recorded in an open ledger known as blockchain that spans many servers worldwide; anyone with a computer can create one – called nodes – that contributes to recording transactions within this network. Furthermore, its security ensures it cannot be modified or deleted without approval from all nodes involved in its network.
Satoshi Nakamoto created Bitcoin as an anonymous means of conducting transactions without needing an intermediary such as banks. Each Bitcoin has a public address which receives funds, as well as its own private key which can be used for authorizing transactions – giving users more anonymity while doing transactions. His invention came at an ideal time: emerging during a global financial crisis which had rocked trust in banks and government-backed financial institutions alike.
What is the Genesis Block?
The Genesis Block is at the core of every blockchain network, serving as a building block to facilitate secure digital transactions in a transparent environment. Unchanged records exist of subsequent blocks and transactions over time.
Every blockchain network starts off with a Genesis Block, also referred to as Block 0 or 1. Each Genesis Block features its own unique identifier called a “block hash”, as well as a timestamp that records when and how it was mined.
Bitcoin’s Genesis Block was mined on January 3, 2009 during the global financial crisis, when many people found their money and pensions were missing from banks. Many speculate that Satoshi may have used this message in his genesis block as an indication of his disillusionment with centralized banking systems; furthermore, its message can be found throughout all subsequent blocks that comprise cryptocurrency networks like blockchain.
What is the Satoshi Nakamoto Institute?
The Institute aspires to both learn from history and advance future developments in cryptography, distributed networks, economic freedom and free software. To this end, it specializes in curating primary source literature on these subjects as a means of challenging the status quo through technological innovation.
Digital Currency Group, owner of Genesis, supports the institute. Unfortunately, however, last year’s collapse of Three Arrows Capital and FTX exposed weaknesses in Digital Currency Group’s compliance and cybersecurity programs that have put its entire reputation at stake.
The bankruptcy court-approved plan establishes a “Victims’ Fund”, which will receive distributions from Genesis’ remaining assets and compensate creditors who invested in its Gemini Earn program for up to $2 billion. This settlement resolves New York Attorney General Letitia James’ lawsuit accusing Genesis of defrauding thousands of investors nationwide, including 29,000 in New York alone, of investing their money with them through Gemini Earn. It also sets in motion Genesis returning customer assets held by them; Gemini expects to distribute 97% of money owed them by May.
What is the Genesis Mining Pool?
Genesis Mining is one of the oldest and most trusted cloud mining providers in the crypto industry, having operated since 2013 and boasting mining farms located across Europe, America and Asia. Renowned for their transparency, Genesis offers users an intuitive dashboard which displays their mining performance.
The company operates its own mining pool, a collaborative of miners who pool their processing power together in order to increase their chances of discovering blocks more often and reduce individual energy consumption and electricity costs which would otherwise become significant expenses.
Genesis mining also allows users to diversify their portfolio by mining multiple cryptos simultaneously, which can be particularly helpful when market fluctuations make certain plans unprofitable. Given the current state of crypto, Genesis mining is taking steps to protect its users from financial loss; working closely with authorities and providing an investment environment where money cannot be lost.
