DCG and Gemini sued by New York Attorney General
Cryptocurrency giants Digital Currency Group (DCG), its subsidiary Genesis Global, and Gemini have been sued by Letitia James, New York Attorney General.
The lawsuit alleges the crypto firms defrauded investors out of more than a billion dollars.
The case hinges around ‘Gemini Earn’ – a program run jointly between Gemini and Genesis which allowed customers to lend digital assets to the firms.
Despite pushing Gemini Earn as a low-risk investment, the Attorney General’s office alleges internal documents reveal Genesis was not financially sound.
James is also keen to explore the connection between DCG, Gemini, Genesis and Sam Bankman-Fried’s collapsed FTX exchange.
She alleges Gemini bosses were fully aware that loans connected with Genesis were not well secured and, at one stage, were largely with hedge fund Alameda – an investment arm of FTX.
Soichiro Moro, former CEO of Genesis, together with DCG chief Barry Silbert are understood to be also facing charges related to attempts to conceal more than a billion dollars of losses.