New York Attorney General Letitia James has escalated her lawsuit against Digital Currency Group (DCG), charging more than $3B in fraud. After further research, James found that the fraud's impact exceeded the original estimates. These new findings increased the damage sum by $2B.
The complaint is directed at Gemini Earn, a Genesis loan program — owned by DCG. Initially, the action focused on regular investors who suffered significant losses in the Gemini Earn program. Ongoing investigations, however, have shown broader investor losses, including direct investors in Genesis.
Genesis, Gemini, and DCG were accused in October of scamming over 29,000 New Yorkers out of more than $1B. These claims included charges against DCG and Genesis for concealing $1.1B in losses through disinformation and omissions.
The NYAG's revised case now charges the companies with schemes that defrauded over 230,000 investors and eroded assets worth more than $3B. In a public statement, James chastised DCG for misleading promises and widespread deception, claiming that complaints of such injury have continued since the case's inception.
