Crypto Giants Gemini, Genesis, and DCG Face $1.1 Billion Fraud Lawsuit
Crypto exchange Gemini, crypto lender Genesis, and its parent company Digital Currency Group (DCG) have been sued for $1.1 billion in a civil lawsuit filed by the New York attorney general. The lawsuit alleges that the companies lied to customers and caused significant losses by marketing a program called Gemini Earn as a safe way to earn interest on crypto holdings. However, the program was riskier than advertised, with loans handed out by Genesis being high-risk and concentrated among a small number of third parties. When Genesis faced financial difficulties, Gemini Earn customers lost access to around $900 million. The lawsuit seeks to prevent the companies from doing business in New York and obtain restitution for defrauded investors. The case could also impact the approval of a bitcoin exchange-traded fund and have broader implications for the crypto industry.
- Crypto Groups Gemini, Genesis, and DCG Sued for $1.1 Billion 'Fraud' WIRED
- New York AG sues Digital Currency Group, Genesis and Gemini, alleging fraud: CNBC Crypto World CNBC Television
- New York Attorney General Sues Crypto Firms in $1 Billion Fraud Case The New York Times
- New York sues crypto firms for alleged $1 billion fraud, cites SBF hedge fund bet CNBC
- Cryptocurrency firms sued over ‘$1bn investor fraud’ by New York state The Guardian
Reading Insights
0
10
4 min
vs 5 min read
85%
911 → 138 words
Want the full story? Read the original article
Read on WIRED