New York Attorney General Letitia James has expanded
her legal pursuit against Digital Currency Group (DCG), its CEO Barry Silbert,
and Genesis Global Capital. The amended complaint, following the initial lawsuit filed last year, exposes an additional $2 billion in fraud, bringing the total
losses suffered by more than 230,000 investors to $3 billion.
According to James, following the lawsuit filed against Gemini, Genesis,
and DCG, the cryptocurrency industry is still grappling with massive fraud. The initial lawsuit
highlighted misleading representations regarding the Gemini Earn investment
program, resulting in over $1 billion in losses suffered by investors.
James mentioned: “The fraud
and deceit were so expansive that many additional people have come forward to
report similar harm. This illegal cryptocurrency scheme and the horrific
financial losses that real people have suffered are yet another reminder of why
stronger cryptocurrency regulations are needed to protect all investors.”
However, the latest developments revealed a more
intricate web of deceit, with DCG, through Genesis, allegedly defrauding not
only Gemini Earn participants but also direct contributors to DCG’s affiliate
Genesis, the AG said. Initially focusing on retail investors
participating in the Gemini Earn program, the scope of the alleged fraud has expanded as
additional complaints surfaced.
NYAG Seeks $3 Billion Restitution
The complexity of the scheme, involving Genesis and
DCG, has unveiled more victims who suffered losses, prompting the office of the Attorney General to seek restitution
exceeding $3 billion for the defrauded investors.
This latest legal action is part of Attorney General
James’ ongoing efforts to bring accountability to the cryptocurrency industry.
Emphasizing the need for robust regulations, James has unveiled new cryptocurrency legislation aimed at protecting New York investors.
The lawsuit against DCG is not an isolated incident. The AG has brought similar actions against companies like CoinEx, Coin Cafe, and Nexo.
The legal battles waged by Attorney General James
against fraudulent cryptocurrency practices date back to 2021. From directing
unregistered crypto lending platforms to cease operations to securing
multimillion-dollar judgments against companies like Bitfinex, Tether,
Coinseed, and CoinEx, James is pushing for the regulation of the crypto sector.
The New York Attorney General accuses Gemini,
Genesis, and DCG the companies of deceitful practices, including hiding losses
and misleading investors about the safety of their investments.
The lawsuit alleges that Gemini misled investors
about the safety of its partnership with Genesis while Genesis and DCG
attempted to conceal significant losses, resulting in substantial financial
harm to thousands of investors.
New York Attorney General Letitia James has expanded
her legal pursuit against Digital Currency Group (DCG), its CEO Barry Silbert,
and Genesis Global Capital. The amended complaint, following the initial lawsuit filed last year, exposes an additional $2 billion in fraud, bringing the total
losses suffered by more than 230,000 investors to $3 billion.
According to James, following the lawsuit filed against Gemini, Genesis,
and DCG, the cryptocurrency industry is still grappling with massive fraud. The initial lawsuit
highlighted misleading representations regarding the Gemini Earn investment
program, resulting in over $1 billion in losses suffered by investors.
James mentioned: “The fraud
and deceit were so expansive that many additional people have come forward to
report similar harm. This illegal cryptocurrency scheme and the horrific
financial losses that real people have suffered are yet another reminder of why
stronger cryptocurrency regulations are needed to protect all investors.”
However, the latest developments revealed a more
intricate web of deceit, with DCG, through Genesis, allegedly defrauding not
only Gemini Earn participants but also direct contributors to DCG’s affiliate
Genesis, the AG said. Initially focusing on retail investors
participating in the Gemini Earn program, the scope of the alleged fraud has expanded as
additional complaints surfaced.
NYAG Seeks $3 Billion Restitution
The complexity of the scheme, involving Genesis and
DCG, has unveiled more victims who suffered losses, prompting the office of the Attorney General to seek restitution
exceeding $3 billion for the defrauded investors.
This latest legal action is part of Attorney General
James’ ongoing efforts to bring accountability to the cryptocurrency industry.
Emphasizing the need for robust regulations, James has unveiled new cryptocurrency legislation aimed at protecting New York investors.
The lawsuit against DCG is not an isolated incident. The AG has brought similar actions against companies like CoinEx, Coin Cafe, and Nexo.
The legal battles waged by Attorney General James
against fraudulent cryptocurrency practices date back to 2021. From directing
unregistered crypto lending platforms to cease operations to securing
multimillion-dollar judgments against companies like Bitfinex, Tether,
Coinseed, and CoinEx, James is pushing for the regulation of the crypto sector.
The New York Attorney General accuses Gemini,
Genesis, and DCG the companies of deceitful practices, including hiding losses
and misleading investors about the safety of their investments.
The lawsuit alleges that Gemini misled investors
about the safety of its partnership with Genesis while Genesis and DCG
attempted to conceal significant losses, resulting in substantial financial
harm to thousands of investors.