Gemini

James

New York Attorney General Letitia James has decided to expand her lawsuit against crypto exchange Gemini, Genesis Global Capital unit, and the Digital Currency Group (DCG). The move will increase the size of their alleged fraud scheme to more than $3 billion.
On the other hand, as reported earlier by TheCoinRise,<a href="https://thecoinrise.com/gemini-files-lawsuit-against-genesis-over-1-6b-gbtc-shares/" rel="noopener noreferrer nofollow"> Genesis and Gemini are currently engaged in a dispute</a> over $1.6 billion worth of GBTC shares that the bankrupt crypto lending firm wants to sell but the crypto exchange claims to have authority over.&nbsp;
<h2 id="span-style-font-weight-400-gemini-and-dcg-caused-billions-in-losses-span">Gemini and DCG Caused Billions in Losses</h2>
According to a<a href="https://ag.ny.gov/press-release/2024/attorney-general-james-expands-lawsuit-against-cryptocurrency-company-digital" rel="noopener noreferrer nofollow"> release</a>, James decided to expand the Office of the Attorney General’s (OAG) lawsuit against the three companies “and its affiliates’ (Genesis) former CEO, Soichiro Moro, for defrauding additional individuals and institutions of an additional $2 billion.”
“After months of false promises, we pulled the curtain back and revealed that DCG was lying to investors and defrauding them out of billions,” said Attorney General James.&nbsp;
The release noted that more investors have come forward, claiming losses, which has led to the total money lost as a result of Gemini and the other two firms being $3 billion. It is crucial to note that<a href="https://thecoinrise.com/genesis-global-files-for-bankruptcy-protection-in-the-us/" rel="noopener noreferrer nofollow"> Genesis filed for bankruptcy in January 2023,</a> following the crypto market slump.
<h3 id="span-style-font-weight-400-additional-investors-defrauded-span">Additional Investors Defrauded</h3>
James noted that investors were provided with false assurances that their money was safe, “when in fact they were not, leading to an additional $2 billion in assets that were lost,” while adding:
“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.”
<h2 id="span-style-font-weight-400-victims-blame-genesis-and-gemini-span">Victims Blame Genesis and Gemini</h2>
The release noted that many investors have come forward to share their experiences and express their situations.&nbsp;
“The initial suit focused largely on the losses of retail investors participating in the Gemini Earn investment program, as more complaints have been made, it became clear that the complicated nature of the fraud also swindled other investors who contributed their money directly to DCG’s affiliate Genesis,” said the release.
<h3 id="span-style-font-weight-400-sale-of-gbtc-span">Sale of GBTC</h3>
The decision to<a href="https://thecoinrise.com/genesis-to-sell-assets-worth-1-6b-held-in-grayscale-trusts/" rel="noopener noreferrer nofollow"> sell $1.6 billion in GBTC shares</a> to repay the creditors of Genesis has been long pending, as Gemini has strongly contested the ownership of the assets. Genesis stated that the sale of the assets would maximize the capital for creditors for faster repayment, while the crypto exchange has challenged the firm’s ownership of the shares.
The post <a href="https://thecoinrise.com/gemini-dcg-target-of-expanded-lawsuit-by-ny-attorney-general/" rel="noopener noreferrer nofollow">Gemini, DCG Target of Expanded Lawsuit by NY Attorney General</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Gemini, DCG Target of Expanded Lawsuit by NY Attorney General

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