- New York Attorney General Letitia James expanded her lawsuit against Digital Currency Group (DCG) and Genesis to $3 Billion
- The amended complaint accuses DCG of misleading investors not only Earn program but also affect direct investments.
- DCG firmly denies the accusations, calling the lawsuit “baseless” and vowing to fight it aggressively.
New York Attorney General Letitia James has expanded her fraud lawsuit against Digital Currency Group (DCG) and its crypto lending subsidiary Genesis. It alleges that these companies are responsible for $3 billion in investor losses.
From $1 Billion to $3 Billion
On Feb 8, New York Attorney General Lettia James filed suit in connection with Gemini Earn Program
The original lawsuit, filed in October 2023, accused DCG, Genesis, and Gemini Trust Co. of defrauding investors.
The now-defunct Gemini Earn program by made false assurances about the safety of their funds. The amended complaint, filed on February 9, 2024, broadens the scope, alleging DCG.
“In total, OAG [Office of the Attorney General] found that these companies defrauded more than 230,000 investors out of more than $3 billion.”
Later, on Feb 9, James’ office claims over 230,000 investors were alleged fraud, with losses totaling $3 billion.
“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,”
James
DCG Refutes Accusations, Calls Lawsuit “Baseless”
Since DCG has denied the accusations, dismissing the amended complaint as a “baseless attempt” by the Attorney General to generate headlines.
The company spokesperson asserted, “DCG has always conducted its business lawfully and with integrity, and DCG and Barry Silbert will be fully vindicated.”
DCG Refutes Accusations, Calls Lawsuit “Baseless”
The lawsuit sets the stage for a potentially lengthy legal battle, with significant implications for both DCG and the broader cryptocurrency industry.
The case also reignites the debate surrounding cryptocurrency regulation, as James emphasizes the need for stricter measures to protect investors.
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