By Anjali Kochhar
According to a recent court document, New York Attorney General Letitia James has strengthened her civil fraud action against Digital Currency Group (DCG), alleging that the company is accountable for $3 billion in investor losses connected to the Gemini Earn product and to direct investments with Genesis.
As mentioned in a $1 billion fraud lawsuit filed in October against DCG, its now-defunct lending platform Genesis, and Gemini Trust Co., the companies are accused of deceiving investors and giving them false hope that their money will be safe, despite the fact that their management knew that disaster was drawing near. The fraud case initially concentrated on the Gemini Earn investment program that Genesis and Gemini jointly operated; but, following the lawsuit, according to James’ office, other investors complained about Genesis more directly of cheating them.
According to the attorney general, up to 230,000 people have lost up to $3 billion, which is what prompted the lawsuit to be expanded in the New York Supreme Court on Friday.
James emphasized the widespread nature of the fraud and deception, noting that numerous individuals have stepped forward to recount similar instances of harm. She highlighted the need for more stringent cryptocurrency regulations to safeguard all investors, citing the illegal cryptocurrency scheme and the significant financial losses incurred by innocent people as compelling reasons.
In response, the company said on Friday that the AG was only trying to make news
This is nothing new,” a DCG representative claimed in an email, charging the AG with filing a “baseless complaint” in an attempt to garner additional media coverage. “We’re going to take a strong stance against the claims and prevail.” There will be complete justice for DCG and Barry Silbert, as they have consistently operated their business rightfully and honorably.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
