New York State Attorney General Letitia James has filed a lawsuit against three major cryptocurrency firms, Gemini, Genesis, and Digital Currency Group (DCG), accusing them of defrauding more than 230,000 investors. The lawsuit alleges that the companies attempted to conceal $1.1 billion in losses and repeatedly lied to their investors. The investigation found that Gemini misled investors about the risks of its Gemini Earn program, which aimed to provide yield on crypto assets. Gemini partnered with Genesis for this service. The lawsuit also claims that Genesis’ loans were undersecured at one point and concentrated within Alameda Research, the trading arm of bankrupt exchange FTX. The lawsuit seeks to ban all three firms from the financial investment industry in New York and requests compensation for investors’ losses. The New York State Attorney General vows to continue efforts to stop deceptive cryptocurrency companies and push for stronger regulations to protect investors. Genesis filed for bankruptcy earlier this year, owing $735 million to members of the Earn program. Gemini co-founder Cameron Winklevoss alleges that DCG, Genesis, and other executives created false financial reports to deceive creditors.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Soichiro Moro, Barry Silbert, Letitia James, Cameron Winklevoss |
| Companies | Digital Currency Group (DCG), FTX, Alameda Research, Genesis, Gemini |
| Currencies | None |
| Securities | None |
