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Crime and Investigations

NY Attorney General: Digital Currency Group Accused of $3 Billion Fraud

NY Attorney General: Digital Currency Group Accused of $3 Billion Fraud

New York State Attorney General Letitia James has filed an amended complaint, alleging that Digital Currency Group (DCG) and its affiliate Genesis were involved in fraudulent activities resulting in losses for approximately 230,000 investors, totaling more than $3 billion.

The initial lawsuit, filed in October 2023, accused DCG, along with the cryptocurrency exchange Gemini and bankrupt lending firm Genesis, of concealing losses of $1.1 billion while providing false information to investors.

An investigation revealed that Gemini had misrepresented the risks associated with its Gemini Earn program, which aimed to provide returns on cryptocurrency assets in partnership with Genesis. Genesis declared bankruptcy the previous year, leaving participants in the Earn program owed a combined $735 million.

Following the initial lawsuit announcement, additional affected investors came forward, leading to a revision of the estimated losses.

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According to the Attorney General’s Office, the complex nature of the fraud also affected direct investors in DCG’s subsidiary, Genesis.

The amended complaint alleges that Genesis, its former CEO Soichiro Moro, and DCG CEO Barry Silbert defrauded additional individuals and institutions of approximately $2 billion.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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