World Crypto Global
- Written by: Jared Kirui
- Fri, 09 Feb 2024
- Israel
New York Attorney General Letitia James has expandedher legal pursuit against Digital Currency Group (DCG), its CEO Barry Silbert,and Genesis Global Capital. The amended complaint, following the initial lawsuit filed last year, exposes an additional $2 billion in fraud, bringing the totallosses suffered by more than 230,000 investors to $3 billion. Alleged Deceptive PracticesAccording to James, following the lawsuit filed against Gemini, Genesis,and DCG, the cryptocurrency industry is still grappling with massive fraud. The initial lawsuithighlighted misleading representations regarding the Gemini Earn investmentprogram, resulting in over $1 billion in losses suffered by investors. James mentioned: "The fraudand deceit were so expansive that many additional people have come forward toreport similar harm. This illegal cryptocurrency scheme and the horrificfinancial losses that real people have suffered are yet another reminder of whystronger cryptocurrency regulations are needed to protect all investors."The latest developments reportedly revealed a moreintricate web of deceit, where DCG, through Genesis, allegedly defrauded Gemini Earn participants and the direct contributors to DCGs affiliateGenesis, the AG said. Initially focusing on retail investorsparticipating in the Gemini Earn program, the scope of the alleged fraud has expanded asadditional complaints surfaced. NYAG Seeks $3 Billion RestitutionThe complexity of the scheme, involving Genesis andDCG, has unveiled more victims who suffered losses. This legal action is part of Attorney GeneralJames' ongoing efforts to bring accountability to the cryptocurrency industry.Emphasizing the need for robust regulations, James has introduced new cryptocurrency legislation to protect investors in New York. The lawsuit against DCG is not an isolated incident. The AG has brought similar actions against companies like CoinEx, Coin Cafe, and Nexo.The legal battles waged by Attorney General Jamesagainst fraudulent cryptocurrency practices date back to 2021. From directingunregistered crypto lending platforms to cease operations to securingmultimillion-dollar judgments against companies like Bitfinex, Tether,Coinseed, and CoinEx, James is pushing for the regulation of the crypto sector.The New York Attorney General accused Gemini,Genesis, and DCG the companies of deceitful practices, including hiding lossesand misleading investors about the safety of their investments.The lawsuit alleges that Gemini misled investorsabout the safety of its partnership with Genesis while Genesis and DCGattempted to conceal significant losses, resulting in substantial financialharm to thousands of investors.This article was written by Jared Kirui at www.financemagnates.com.
