Gemini

Cryptocurrency

Billion

James

Taking an important step against cryptocurrency companies, New York Attorney General Letitia James filed a lawsuit against three major digital asset industry companies, accusing them of defrauding investors and hiding their losses in a $1 billion scheme. 
The lawsuit targets Gemini Trust, an exchange run by Tyler and Cameron Winklevoss, Genesis Capital, a lending company, and Digital Currency Group, Genesis' parent company. 
James alleges that Gemini misled investors about the risks associated with Gemini Earn, a program launched by Gemini and Genesis. 
The program promised investors returns as high as 8 percent if they lent their cryptocurrencies to Genesis. 
But the lawsuit alleges that Genesis ran into difficulties after the FTX cryptocurrency exchange founded by Sam-Bankman Fried collapsed last November. 
The collapse in digital asset values led to accounts being frozen, leaving Earn investors unable to get back hundreds of millions of dollars of cryptocurrencies. 
The lawsuit also alleges that Gemini was aware of the high risk associated with Genesis but failed to disclose this information to investors. This left at least 29,000 New Yorkers and hundreds of thousands more across the US unaware of potential risks to their assets. 
Related News: <a href="https://en.bitcoinsistemi.com/there-was-an-outage-in-the-popular-altcoin-network-cryptocurrency-exchanges-suspended-transactions/" target="_blank" rel="dofollow" class="u3c4f47828f707e972f370e39c9561c59"><style> .u3c4f47828f707e972f370e39c9561c59 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u3c4f47828f707e972f370e39c9561c59:active, .u3c4f47828f707e972f370e39c9561c59:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u3c4f47828f707e972f370e39c9561c59 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u3c4f47828f707e972f370e39c9561c59 .ctaText { font-weight:bold; color:#464646; text-decoration:none; font-size: 16px; } .u3c4f47828f707e972f370e39c9561c59 .postTitle { color:#000000; text-decoration: underline!important; font-size: 16px; } .u3c4f47828f707e972f370e39c9561c59:hover .postTitle { text-decoration: underline!important; } </style></a>
<div style="padding-left:1em; padding-right:1em;">
 <a href="https://en.bitcoinsistemi.com/there-was-an-outage-in-the-popular-altcoin-network-cryptocurrency-exchanges-suspended-transactions/" target="_blank" rel="dofollow" class="u3c4f47828f707e972f370e39c9561c59">Related News&nbsp; There was an outage in the popular Altcoin Network! Cryptocurrency Exchanges Suspended Transactions!</a> 
 Genesis and Digital Currency Group are also accused of trying to hide Genesis' losses from Gemini, Earn investors and the public. 
 According to the lawsuit, the two companies concealed their financial problems when they signed a $1.1 billion, 10-year note with Genesis Digital Currency last year. 
 This deal was allegedly intended to give the false impression that Genesis was financially stable and to encourage investors to continue participating in the Earn program. 
 James said in a press release: 
 “This scam is yet another example of bad actors causing damage in the poorly regulated cryptocurrency industry. 
 “Our office will continue our push for stronger regulations to stop deceptive cryptocurrency companies and protect all investors.” 
 The lawsuit also names former Genesis CEO Soichiro Moro and Digital Currency CEO Barry Silbert. 
 *This is not investment advice. 
 Continue Reading: <a rel="nofollow" href="https://en.bitcoinsistemi.com/new-york-attorney-general-sues-numerous-cryptocurrency-companies-1-billion-fraud-alleged/">New York Attorney General Sues Numerous Cryptocurrency Companies: $1 Billion Fraud Alleged!</a> 
</div>

New York Attorney General Sues Numerous Cryptocurrency Companies: $1 Billion Fraud Alleged!

Bitcoin Sistemi EN

Other articles published on Oct 19, 2023

Utilizing the Blockchain Technology and the Power of KSN Token

SEC may refuse Grayscale’s Bitcoin ETF despite court win

Ripple Executives Triumph Over SEC’s Charges

Solana Defies FUD to Reclaim $10B Cap, Overtaking ADA and DOGE

XRP Melemah Pasca 'Kasus Roblox'

Forge Secures $11M Seed Round Led by Makers Fund, BITKRAFT and Animoca Brands

Join our free newsletter for daily crypto updates!