New York’s Attorney General Letitia James has ramped up its civil fraud case against Digital Currency Group (DCG), now alleging the company is responsible for $3 billion in investor losses linked to the Gemini Earn product and direct investments with Genesis. In an amended complaint filed yesterday, Attorney General James expanded the lawsuit against DCG, its CEO Barry Silbert, Genesis Global Capital, LLC, and former CEO Soichiro Moro.
The initial lawsuit was filed in October 2023, and targeted Gemini, Genesis, and DCG. Alleging misleading representations to investors about the Gemini Earn program, resulting in over $1 billion in losses.
Attorney General James’ allegations
Initially focusing on the Gemini Earn investment program, the lawsuit expanded as more investors came forward reporting losses directly tied to Genesis. According to James’ office, up to 230,000 individuals suffered losses totaling as much as $3 billion, prompting the lawsuit’s expansion in the New York Supreme Court.
“The fraud and deceit were so expansive that many additional people have come forward to report similar harm,” stated Attorney General James. “This illegal crypto scheme and the significant financial losses suffered by real people underscore the urgent need for stronger cryptocurrency regulations to protect all investors.”
In response to the expanded lawsuit, a DCG spokesperson accused the Attorney General of seeking media attention with baseless claims. “There is nothing new here,” the spokesperson stated, adding, “DCG has always conducted its business lawfully and with integrity, and DCG and Barry Silbert will be fully vindicated.”
How is the global crypto market?
The crypto market has seen significant fluctuations, with the global market cap currently standing at $1.79 trillion, reflecting a 2.79% increase over the last day. The total market volume in the past 24 hours is $73.62 billion, marking a 24.49% increase. Within the market, the volume of DeFi stands at $5.75 billion, constituting 7.81% of the total market volume, while stablecoins represent $68.09 billion, or 92.49% of the total market volume. Bitcoin’s dominance has slightly increased to 51.95%.
The expansion of the fraud case against DCG highlights the growing concerns surrounding investor protection in the cryptocurrency space. With regulators like the New York Attorney General taking action against alleged fraudulent practices, there is a call for tighter regulations to safeguard investors’ interests.
