New York AG accuses Gemini, Genesis, and Digital Currency Group of defrauding investors out of more than $1 billion

[{"selector":"#anim-249f6034-249e-4934-bbef-29ba58c7f285 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] New York Attorney General Letitia James sues Gemini, Genesis, and Digital Currency Group over alleged fraud of more than $1 billion.

[{"selector":"#anim-f4481a96-eb95-4324-ba2c-62f4b9d0232a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.24141786493601%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Gemini and Genesis faced multiple lawsuits over the Gemini Earn investment product, with the SEC also involved in the litigation.

[{"selector":"#anim-bfc36e89-443a-4185-b503-9499c4129bea [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.828855291908947%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Letitia James calls out the crypto companies for causing harm in the under-regulated cryptocurrency industry, affecting middle-class investors.

[{"selector":"#anim-48a36a63-8a03-49e3-9c4d-e7b3809e2d71 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Gemini Earn offered high-interest rates during the crypto bull run, but the lawsuit reveals risky lending practices and concealment of crucial information.

[{"selector":"#anim-18e369bf-eb13-4e72-befc-abc525f60f9f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.240844612732676%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] More than 230,000 investors, including a 73-year-old grandmother who invested her life savings, suffered losses as Genesis faced bankruptcy and froze funds.

[{"selector":"#anim-78b475db-1154-4395-aa08-845fa5c205e1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Lawsuit seeks restitution for investors, disgorgement penalties, and a halt to Gemini, Genesis, and DCG's business activities related to securities and commodities in New York.

[{"selector":"#anim-17d48836-ffe8-4c60-8c77-13a6a251e5a9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.24066090794222%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The complaint also charges Silbert and former Genesis CEO Soichiro Moro with trying to conceal more than $1.1 billion in losses from investors—Gemini as well as the public.

[{"selector":"#anim-cd270309-85de-47a8-b18c-adccda701a0a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] According to the lawsuit, Genesis lied to Gemini about conducting regular reviews of its borrowers’ financial statements, alleging that Genesis still hadn't received audited financial statements from Three Arrows Capital more than two years after asking for them.

[{"selector":"#anim-39142ead-7afe-4944-8a16-322b9073d53b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] For more such interesting stuff click here swipe up