NYAG Sues Genesis, Gemini, DCG for Defrauding Crypto Investors of $1 Billion
The post NYAG Sues Genesis, Gemini, DCG for Defrauding Crypto Investors of $1 Billion appeared on BitcoinEthereumNews.com.
The New York Attorney General’s office has filed a lawsuit against Genesis Global Capital, Gemini Trust, and Digital Currency Group (DCG) this morning. The complaint also includes allegations against Soichiro Michael Moro, the former CEO of Genesis, and Barry E. Silbert, the founder and CEO of DCG. “These cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and it was middle-class investors who suffered as a result,” said New York Attorney General Letitia James in a statement. Genesis Global Capital was a New York-based lending market that went bankrupt in January. It is one of many Genesis entities. Gemini is a crypto exchange operated by Tyler and Cameron Winklevoss, and DCG is a large crypto-centric conglomerate that owns a variety of different assets in the industry, including Genesis itself, crypto investment firm Grayscale, and media outlet CoinDesk. The NYAG lawsuit alleges that the three entities defrauded 232,000 customers for over $1 billion. “We fully intend to fight the claims and look forward to being vindicated in this case,” a DCG spokesperson shared with Decrypt. “We have actively cooperated for months with the Attorney General’s investigation in an open and transparent manner. We were blindsided by the filing of the complaint, and there is no evidence of any wrongdoing by DCG, Barry Silbert, or its employees.” This was allegedly executed via “two distinct fraudulent schemes,” labeled throughout the lawsuit as the “Gemini Scheme” and the “DCG Scheme.” The Gemini scheme, the NYAG alleges, saw Gemini misrepresent the creditworthiness of Genesis Global when soliciting users for its Earn program. Before halting withdrawals last year, Gemini offered users yield on their idle cryptocurrencies via the program. To generate that yield, Gemini deposited those holdings with Genesis Global. “Gemini’s internal risk analyses, however, contradicted its assurances about…
Filed under: News - @ October 21, 2023 2:20 am