New York Attorney General Seeks $3 Billion in Lawsuit against Gemini and Digital Currency Group
New York Attorney General Letitia James has expanded a civil lawsuit against Gemini and Digital Currency Group (DCG), seeking $3 billion in restitution for defrauded investors. Previously, James sought $1 billion in restitution, but has now increased the amount. The lawsuit also includes Genesis Global Capital, the parent company of Genesis. James alleges that the firms defrauded investors out of over $1 billion and is now seeking an additional $2 billion to compensate the victims of the fraud.
Dozens of Investors Report Losses
Since the initial lawsuit was filed, dozens of additional investors have come forward to report their losses. These investors have joined the complaint, bringing the total number of investors claiming to have been defrauded to over 230,000. Gemini, operated by the Winklevoss twins, and Genesis, DCG’s crypto lending arm, are accused of defrauding investors by not adequately disclosing the risks associated with their joint crypto investing program, Gemini Earn.
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New Complaint Expands Scope
The newly filed complaint now extends beyond losses associated with the Gemini Earn program. It includes losses suffered by investors directly investing in Genesis. The Securities and Exchange Commission (SEC) previously sued Gemini and Genesis for selling unregistered securities through the Earn program. Genesis recently settled with the SEC, agreeing to pay an $8 million penalty and surrendering its New York Department of Financial Services license.
DCG Rejects Lawsuit as “Baseless”
DCG has labeled James’ lawsuit as “baseless” and expects to win. The company maintains that it has always conducted its business lawfully and with integrity. DCG and its CEO, Barry Silbert, are confident that they will be vindicated.
