New York Attorney General Letitia James is taking strong steps in her legal pursuit against Digital Currency Group (DCG) and its partner Gemini Trust Co. She has now upped the ante, pushing for restitution to the tune of $3 billion.
This move comes hot on the heels of a settlement reached between Genesis Global and New York authorities over allegations tied to the defunct Gemini Earn program. The revised lawsuit paints a concerning picture, with claims pouring in from over 230,000 investors – a stark indication that the alleged fraud may be far more widespread than initially thought.
Originally seeking $1.1 billion in damages back in October, the lawsuit’s demand has been substantially bolstered by fresh testimonies from investors who felt misled about the safety of their investments.
While no new allegations have been introduced against Gemini, the legal action zeroes in on the alleged failure of both Gemini and Genesis Global Capital, a DCG subsidiary, to adequately warn investors about the risks associated with a crypto lending program launched in 2021.
The timing of the program’s collapse, coinciding with major bankruptcies in the crypto industry, including the high-profile collapse of FTX led by Sam Bankman-Fried, adds another layer to this complex legal saga.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.