New York Attorney General Letitia James has escalated her battle against cryptocurrency giant Digital Currency Group (DCG).
New York Attorney General Letitia James has escalated her battle against cryptocurrency giant Digital Currency Group (DCG), tripling the amount of restitution sought from $1 billion to a staggering $3 billion. The amended lawsuit, filed on February 9th, alleges that DCG, along with its subsidiaries Genesis Global Capital and Gemini Trust, engaged in a "widespread and expansive fraud" that left over 230,000 investors with financial losses.
The core accusation remains the same: DCG, Genesis, and Gemini are accused of misleading investors and concealing over $1 billion in losses. However, the amended lawsuit expands the scope, claiming "many additional people have come forward to report similar harm," implying the fraudulent scheme extended beyond Gemini's Earn program, which relied on funds from Genesis.
The Attorney General's office paints a grim picture, stating that "the fraud and deceit were so expansive" that many individuals were directly conned by DCG's affiliate Genesis. This broader perspective significantly increases the number of alleged victims and the claimed financial losses.
DCG vehemently denies the accusations, calling the amended lawsuit "baseless" and a "rehashed complaint" aimed at generating media attention. They maintain their innocence and vow to "fight the claims aggressively."
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