Summary
New York Attorney General Letitia James is seeking $3 billion in restitution from Gemini Trust and Digital Currency Group (DCG) for alleged fraud involving their Gemini Earn product. The initial lawsuit alleged investors had been swindled out of $1.1 billion, but the figure has now increased to $3 billion to reflect losses from additional investors. The complaint accuses Gemini of falsely advertising Earn as a “highly liquid investment” and misleading investors about Genesis Capital’s creditworthiness. The total number of impacted investors is now 230,000. The amended lawsuit comes as Genesis continues bankruptcy proceedings and recently won a court ruling confirming its ownership of Grayscale Bitcoin Trust shares worth around $1.2 billion.
Key Points
– New York Attorney General Letitia James is seeking $3 billion in restitution from Gemini Trust and Digital Currency Group for alleged fraud involving the companies’ Gemini Earn product.
– The initial lawsuit alleged that investors had been swindled out of $1.1 billion, but the figure has now increased to $3 billion to reflect losses from additional investors that have come forward.
– Gemini falsely advertised Earn as “a highly liquid investment” and misled investors about the creditworthiness of subsidiary Genesis Capital, according to the complaint.