Cryptocurrency firms sued over ‘$1bn investor fraud’ by New York state
by Guardian staff and agencies from Technology | The Guardian on (#6FPT0)
Attorney general Letitia James brings lawsuit against Genesis Global - and parent DCG - and Gemini
The New York attorney general, Letitia James, on Thursday sued the cryptocurrency firms Genesis Global, and its parent company Digital Currency Group (DCG), and the Winklevoss twins' Gemini for allegedly defrauding" investors of more than $1bn.
At the heart of the lawsuit is a program Gemini ran in partnership with Genesis. Dubbed Gemini Earn", the program let customers lend crypto assets such as bitcoin to Genesis. Gemini had billed the program as a low-risk investment" even when its internal analyses had found Genesis was on risky financial footing, James alleged.
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