NY Attorney General Looking to Expand Gemini And DCG Lawsuit With $3 Billion Fraud
Key Points:
- The New York Attorney General triples the Gemini and DCG lawsuit, now seeking $3 billion in restitution for over 230,000 investors.
- Allegations include failure to disclose the risks of crypto-lending programs, leading to collapse and significant losses for investors.
New York Attorney General Letitia James has revised her lawsuit against Gemini Trust Co. and Barry Silbert’s Digital Currency Group, expanding the alleged fraud scheme to $3 billion, three times larger than initially claimed.
New York Attorney General Triples Gemini And DCG Lawsuit, Seeks $3 Billion Restitution
The Gemini and DCG lawsuit now seeks restitution for over 230,000 investors who were reportedly misled about the safety of their investments.
Initially filed seeking $1.1 billion in October, the civil complaint was amended after additional DCG investors alleged they were misled about their investments’ safety. The amended suit doesn’t introduce new allegations against Gemini.
The lawsuit accuses Gemini and DCG’s Genesis Global Capital of failing to disclose the risks of a crypto-lending program initiated in 2021, which collapsed last year amid bankruptcies, including FTX’s Sam Bankman-Fried.
Attorney General James stated, “The fraud and deceit were so expansive that many additional people have come forward to report similar harm,” emphasizing the need for stronger cryptocurrency regulations.
Legal Battles and Regulatory Concerns Mount as Genesis Global Capital Faces Accusations
Gemini, founded by Cameron and Tyler Winklevoss, purportedly misled customers about loan risks in its partnership with Genesis, with almost 60% of third-party loans allegedly going to Bankman-Fried’s Alameda Research. The suit claims Genesis concealed losses, including over $1 billion invested in Three Arrows Capital and over $100 million lost from Babel Finance.
DCG has denounced the Gemini and DCG lawsuit as baseless, asserting its intent to contest the claims. Genesis, which filed for bankruptcy in January 2023, reached a settlement with James’ office, contingent on repaying customers through Chapter 11 proceedings.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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NY Attorney General Looking to Expand Gemini And DCG Lawsuit With $3 Billion Fraud
Key Points:
- The New York Attorney General triples the Gemini and DCG lawsuit, now seeking $3 billion in restitution for over 230,000 investors.
- Allegations include failure to disclose the risks of crypto-lending programs, leading to collapse and significant losses for investors.
New York Attorney General Letitia James has revised her lawsuit against Gemini Trust Co. and Barry Silbert’s Digital Currency Group, expanding the alleged fraud scheme to $3 billion, three times larger than initially claimed.
New York Attorney General Triples Gemini And DCG Lawsuit, Seeks $3 Billion Restitution
The Gemini and DCG lawsuit now seeks restitution for over 230,000 investors who were reportedly misled about the safety of their investments.
Initially filed seeking $1.1 billion in October, the civil complaint was amended after additional DCG investors alleged they were misled about their investments’ safety. The amended suit doesn’t introduce new allegations against Gemini.
The lawsuit accuses Gemini and DCG’s Genesis Global Capital of failing to disclose the risks of a crypto-lending program initiated in 2021, which collapsed last year amid bankruptcies, including FTX’s Sam Bankman-Fried.
Attorney General James stated, “The fraud and deceit were so expansive that many additional people have come forward to report similar harm,” emphasizing the need for stronger cryptocurrency regulations.
Legal Battles and Regulatory Concerns Mount as Genesis Global Capital Faces Accusations
Gemini, founded by Cameron and Tyler Winklevoss, purportedly misled customers about loan risks in its partnership with Genesis, with almost 60% of third-party loans allegedly going to Bankman-Fried’s Alameda Research. The suit claims Genesis concealed losses, including over $1 billion invested in Three Arrows Capital and over $100 million lost from Babel Finance.
DCG has denounced the Gemini and DCG lawsuit as baseless, asserting its intent to contest the claims. Genesis, which filed for bankruptcy in January 2023, reached a settlement with James’ office, contingent on repaying customers through Chapter 11 proceedings.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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