New York Expands Fraud Case Against Digital Currency Group to $3 Billion
New York Attorney General Letitia James has amplified its civil fraud case against Digital Currency Group (DCG), now saying the company is responsible for $3 billion in investor losses tied to the Gemini Earn product and to direct investments with Genesis, according to a new court filing.
New York Attorney General Accuses DCG of $3 Billion in Investor Losses
New York Attorney General Letitia James has expanded her civil fraud case against Digital Currency Group (DCG), alleging that the company is responsible for $3 billion in investor losses. The accusations are tied to the Gemini Earn product and direct investments with Genesis. The lawsuit alleges that DCG, Genesis, and Gemini misled investors by assuring them of the safety of their money despite their knowledge of impending financial trouble.
Initially, a $1 billion fraud lawsuit was filed against DCG, Genesis, and Gemini in October, focusing on the Gemini Earn investment program. However, additional complaints were received, prompting the expansion of the lawsuit to include Genesis' direct swindling of investors. The New York Supreme Court is now hearing the expanded case involving as many as 230,000 people who allegedly lost up to $3 billion.
New York Attorney General Letitia James highlighted the need for stronger cryptocurrency regulations to protect investors, as the case serves as a reminder of the risks involved in the industry.
DCG Responds to Lawsuit Expansion
In response to the expanded lawsuit, DCG has accused the attorney general of seeking media attention through baseless claims. A spokesperson for DCG stated that there was nothing new in the allegations and that the company has always conducted its business lawfully and with integrity. DCG and CEO Barry Silbert are confident of being vindicated and plan to fight the claims aggressively.
The lawsuit against DCG, Genesis, and Gemini was filed by New York Attorney General Letitia James, who continues to pursue justice for the investors affected by the alleged fraud.
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