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<p>The post <a rel="nofollow" href="https://coinpedia.org/news/ny-attorney-generals-allegations-shake-dcg-and-barry-silbert/">Crypto Giants DCG and Genesis Accused of Financial Fraud in New York Lawsuit</a> appeared first on <a rel="nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The crypto world continues to experience new developments everyday – exciting ones at that! Now, a recent post by <a href="https://x.com/ramahluwalia/status/1716218498341597430?s=20">Ram Ahluwalia from Lumida</a> on platform X has set off a worldwide discussion. The post dives into serious allegations made by the New York Attorney General against <a href="https://coinpedia.org/news/genesis-and-gemini-sued-by-letitia-james-new-york-attorney-general-for-defrauding-230000-investors/">Digital Currency Group (DCG)</a> and CEO Barry Silbert. </p> 
<p>Many believe these claims, if proven true, could lead to drastic consequences for the entire industry.</p> 
<p>Here are all the details.</p> 
<h2 class="wp-block-heading" id="h-accusations-and-deceptions">Accusations and Deceptions </h2> 
<p>The New York Attorney General accuses DCG and its subsidiary, Genesis, of using tricky financial practices to hide their true financial health. These alleged tactics fooled both investors and the public.</p> 
<p>In contrast to past financial scandals, like Enron, where they bent the rules but stayed within the law, the NYAG argues that DCG crossed those boundaries. They’re said to have made up financial statements, lied to their employees, and kept important financial facts from their customers.</p> 
<p><strong>Keeping Secrets </strong></p> 
<p>Ahluwalia brings up a troubling accusation – Genesis hid their financial info for a long time, even when their customers and other stakeholders were asking for it.</p> 
<p>The fallout from this situation isn’t just numbers on a page; it’s affecting real people. More than 232,000 investors linked to the <a href="https://coinpedia.org/news/protecting-user-funds-the-real-story-behind-geminis-282-million-move/">Gemini Earn</a> program, with over a billion dollars at stake, are now caught up in this mess. Ahluwalia tells the story of a retired couple who put their life savings into this, now facing a very uncertain financial future.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/gemini-exposes-dcgs-deceptive-genesis-proposal-dcg-plan-b-to-resolve-the-issue/">Gemini Alleges DCG’s Recovery Plan is Misleading; Are Creditors at Risk?Gemini Alleges DCG’s Recovery Plan is Misleading; Are Creditors at Risk?</a></p> 
<h2 class="wp-block-heading" id="strong-john-deaton-s-take-strong"><strong>John Deaton’s Take</strong></h2> 
<p>Well-known crypto lawyer <a href="https://coinpedia.org/altcoin/ethereum-vs-xrp-unpacking-sec-regulatory-favoritism/">John Deaton</a> has responded to Ahluwalia’s post, suggesting that DCG’s days may be numbered, and a big player in the crypto world, Grayscale, might be up for sale. He thinks we’re on the brink of a whole new era in cryptocurrencies.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr">Great <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"> <br><br>Grayscale will be sold off. DCG is done. We are moving into the next era in this space. <a href="https://t.co/g9RSunwwqr">https://t.co/g9RSunwwqr</a></p>— John E Deaton (@JohnEDeaton1) <a href="https://twitter.com/JohnEDeaton1/status/1716278708040835453?ref_src=twsrc%5Etfw">October 23, 2023</a>
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<p>If the New York Attorney General’s requests get the green light, DCG might not be allowed to work in the securities and commodities sectors. That could lead to <a href="https://coinpedia.org/crypto-live-news/grayscale-makes-new-filing-to-convert-gbtc-into-bitcoin-etf-with-sec/">Grayscale</a> going its own way. Things don’t look good for DCG, as they might have to pay big fines and restitution, possibly putting an end to their crypto reign.</p> 
<p>Also Read: <a href="https://coinpedia.org/crypto-live-news/grayscale-craig-salm-is-optimistic-about-incoming-bitcoin-etf/">Grayscale Craig Salm is Optimistic About Incoming Bitcoin ETF!</a></p> 
<p><strong>What do you think of the allegations against DCG? Could this be the end of their crypto reign?</strong></p>

Crypto Giants DCG and Genesis Accused of Financial Fraud in New York Lawsuit

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