Crypto Exchange with Concentrated Loans in Alameda Research Reaches 8-Figure Settlement
Litigation attorney Andrew Balthazor was cited in a Law.com article discussing a settlement New York Attorney General Letitia James recently obtained in a $3 billion fraud case involving a cryptocurrency exchange. The $50 million settlement with the crypto exchange Gemini aims to compensate investors and customers from alleged deceptive practices involving high-risk loans concentrated with Alameda Research, the sister firm of FTX. Notably, the agreement provides dollar-for-dollar restitution to defrauded users. Mr. Balthazor commented on the unique nature of this result.
"It is an outlier for the customers to receive dollar-for-dollar in-kind distributions because if it was an in-kind distribution of a more volatile crypto asset, the math does not add up. But the fact that most users held it denominated in the Gemini U.S. dollar currency explains a lot," he said.
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