New York Attorney General Letitia James has expanded
her legal pursuit against Digital Currency Group (DCG), its CEO Barry Silbert,
and Genesis Global Capital.
The amended complaint, following the initial October
2023 lawsuit, now exposes an additional $2 billion in fraud, bringing the total
losses inflicted on more than 230,000 investors to a staggering $3 billion.
As the October 2023 lawsuit against Gemini, Genesis,
and DCG unfolded, it became evident that the cryptocurrency industry was
grappling with a massive fraud orchestrated by these entities. The initial suit
shed light on misleading representations regarding the Gemini Earn investment
program, resulting in over $1 billion in losses for investors.
Attorney General James mentioned: “The fraud
and deceit were so expansive that many additional people have come forward to
report similar harm. 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.”
However, the latest developments reveal an even more
intricate web of deceit, with DCG, through Genesis, allegedly defrauding not
only Gemini Earn participants but also direct contributors to DCG’s affiliate
The amended complaint filed by Attorney General
James signifies the persistence of investors coming forward to share their
experiences of being duped by DCG. Initially focusing on retail investors
participating in the Gemini Earn program, the scope of the fraud expanded as
additional complaints surfaced.
NYAG Seeks $3 Billion Restitution
The complexity of the scheme, involving Genesis and
DCG, unveils a broader victim pool, prompting the OAG to seek restitution
exceeding $3 billion for the defrauded investors.
This latest legal action is part of Attorney General
James’ ongoing efforts to bring accountability to the cryptocurrency industry.
Emphasizing the need for robust regulations, James announced sweeping cryptocurrency
legislation aimed at protecting New York investors.
The lawsuit against DCG is not an isolated incident,
as previous actions against companies like CoinEx, Coin Cafe, and Nexo
illustrate James’ commitment to curbing fraudulent practices in the
The legal battles waged by Attorney General James