New York AG is suing Gemini and Genesis for fraud of $ 1 billion

• The New York General Prosecutor Letitia James submitted the lawsuit against Gemini, Genesis and DCG on Thursday.
• It is claimed that the crypto companies have lied to investors and failed to lose loss of over $ 1 billion.

The New York Attorney General Letitia James has sued Gemini, Genesis Global Capital and Digital Currency Group for allegations that the crypto companies have cheated over 230,000 investors, of which 29,000 from New York.

crypto company have lied to investors

In the law href = "https://ag.ny.gov/press-release/2023/attorney-general-james-sues-cryptocurrency-companies-gemini genesis-and-dcg"> The companies committed the more than 1.1 billion US dollar fraud program by having losses and Investors repeatedly lied to. Gemini Earn customers were badly affected when Genesis paused the withdrawals in December last year.

I complain cryptocurrency company @zwillinge , @genesistrading and @DCGCO for the fraud of 230,000 investors by more than one billion US dollars.

This is another example of the damage to an unregulated crypto industry. https://t.co/yslvm8nujr

- NY AG James (@Newyorkstateeag) 19. October 2023

According to the Supreme New York public prosecutor, the company did not warn its customers, although Gemini's own analyzes showed that the genesis loans were not only investigated, but also "strongly focused on a company, Alameda by Sam Bankman-Fried". Rather, the crypto exchange repeatedly assured its customers that the EARN program was a low-risk investment.

holding back the information in front of the investors also extended to Genesis and his former CEO Soichiro Moro. The parent company Genesis, which was recently involved in a dispute over customer money with Gemini, is also involved in the allegation. DCG CEO Barry Silbert is also charged in the lawsuit.

" These cryptocurrency companies have lied to the investors and tried to hide losses of more than one billion dollars. The middle class investors in particular were suffered ," said James. She added:

" My office will continue our efforts, to stop fraudulent cryptocurrency companies and to urge stricter regulations to protect all investors ."

The lawsuit against the three companies is the latest procedure of New York AG against crypto companies. Some of the recent measures were directed against the Coinex, Coin Café, Kucoin and Nexo.