The New York Attorney General, Letitia James, has expanded the fraud case against Digital Currency Group (DCG), alleging that the company is accountable for $3 billion in investor losses linked to the Gemini Earn product and direct investments with Genesis, as per a recent court filing.
After Attorney General James sued Gemini Trust Company (Gemini), Genesis, and DCG in October 2023 for providing false information to investors about the Gemini Earn investment program, which resulted in over $1 billion in losses, more investors came forward and filed this amended complaint.
Initially, the fraud case concentrated on the Gemini Earn investment program jointly operated by Genesis and Gemini. However, following the lawsuit, the Attorney General’s office revealed that numerous investors reported direct swindling by Genesis, expanding the scope of the allegations.
According to the attorney general, up to 230,000 people may have lost up to $3 billion, which is what prompted the lawsuit to be expanded in the New York Supreme Court on Friday.
“The fraud and deceit were so expansive that many additional people have come forward to report similar harm,” James stated in a statement.
He added, “This illegal cryptocurrency scheme, and the horrific financial losses that real people have suffered, are yet another reminder of why stronger cryptocurrency regulations are needed to protect all investors.”
Attorney General James sued Gemini, Genesis, and DCG, three cryptocurrency companies, alleging they had defrauded investors out of almost $1 billion in October 2023.
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