New York Attorney General Letitia James has filed a lawsuit against cryptocurrency firms Gemini, Genesis, and Digital Currency Group (DCG), accusing them of defrauding 230,000 investors out of $1.1 billion. The lawsuit specifically focuses on Gemini’s investment product, Gemini Earn, which was marketed as a safe way to earn interest on cryptocurrencies. However, it was discovered that Gemini misled investors about the risks involved and pooled customer assets, which were then given to Genesis. Genesis subsequently loaned out these funds to large institutions, only returning a fraction of the profits. The investigation also revealed that these loans were high-risk and concentrated among certain third parties, including Alameda Research. Genesis faced liquidity issues and filed for bankruptcy protection, making it difficult for Gemini Earn customers to access their funds. The Securities and Exchange Commission (SEC) had previously sued both Genesis and Gemini for violating securities laws related to the Gemini Earn program. The current charges brought by AG James have a broader scope than the SEC’s case, accusing Genesis and DCG of failing to assess loan quality and attempting to conceal losses.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Letitia James, Tyler Winklevoss, Cameron Winklevoss, Barry Silbert
Companies	Digital Currency Group (DCG), Genesis, FTX, Gemini, Alameda Research
Currencies	HairyPlotterFTX, gemini earn
Securities	None