New York Attorney General Files $1 Billion Fraud Lawsuit Against Gemini and Genesis
The New York Attorney General Letitia James has taken legal action against cryptocurrency companies Gemini, Genesis Global Capital, and Digital Currency Group (DCG). The lawsuit alleges that these firms defrauded over 230,000 investors, with 29,000 of them residing in New York. The fraudulent scheme amounts to over $1.1 billion, as the companies concealed losses and repeatedly misled investors.
Crypto Companies Accused of Deception
The lawsuit, filed by the Attorney General, reveals that the companies engaged in deceptive practices to defraud investors. One example of this deception is related to Genesis’ decision to pause withdrawals in December of the previous year, which significantly affected Gemini Earn customers. Although Gemini was aware of Genesis’ undersecured loans, particularly with Alameda, it failed to inform its customers about the risks associated with the Earn program.
I’m suing cryptocurrency companies @Gemini, @GenesisTrading, and @DCGco for defrauding 230,000 investors out of more than $1 billion. This is yet another example of the harms of an unregulated crypto industry.https://t.co/ysLVm8nujr
— NY AG James (@NewYorkStateAG) October 19, 2023
New York Attorney General Letitia James stated that the deception employed by these cryptocurrency companies resulted in middle-class investors suffering significant losses. Her office is committed to not only stopping deceptive practices in the cryptocurrency industry but also advocating for stronger regulations to protect all investors.
This lawsuit against Gemini, Genesis, and DCG is part of New York’s ongoing efforts to crack down on fraudulent activities within the crypto industry. Recent actions have been taken against other cryptocurrency platforms such as CoinEx, Coin Café, KuCoin, and Nexo.
The lawsuit filed by the New York Attorney General against Gemini and Genesis highlights the importance of investor protection and the need for robust regulations in the cryptocurrency industry. As the market continues to grow, it’s crucial for authorities to hold companies accountable for their actions and safeguard the interests of investors. To stay informed about the latest news and developments in the world of cryptocurrencies, visit Uber Crypto News.