New York's attorney general has filed a lawsuit against Gemini, Genesis, DGC for allegedly defrauding investors through the Gemeni Earn investment program.
A filing from New York attorney general Letitia James alleges that the cryptocurrency companies defrauded investors of over $1 billion.An official statement from the office of attorney general Letitia James outlines the basis of the charges, claiming that the companies defrauded more than 23,000 investors, including 29,000 New York citizens of more than $1 billion.
“The lawsuit alleges that Gemini knew Genesis’ loans were undersecured and at one point highly concentrated with one entity, Sam Bankman-Fried’s Alameda, but did not reveal this information to investors.” A statement from the New York attorney general highlighted the losses suffered by “middle-class investors”:
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