New York state expands $1 billion lawsuit against three crypto companies.
now, Attorney General Letitia James Alleges a fraudulent scheme carried out by. digital currency group (DCG), the genesis global capital derivatives, and gemini trust Its size was three times as large as previously thought, at $3 billion.
in amended complaint In a lawsuit filed Friday (Feb. 9), James said he has made more investments since his firm sued three companies last year for misleading investors about an investment program known as Gemini Earn. He said the family has come forward.
“Further investigation revealed that these additional investors I was fooled as well It provided false assurances that funds were safe when in fact they were not, resulting in an additional $2 billion in lost assets. ”
The attorney general's office determined that these companies collectively defrauded more than 230,000 investors of more than $3 billion, the statement said.
“After months of false promises, we pulled back the curtain and revealed that DCG had lied to investors and defrauded them of billions of dollars,” James said. “Fraud and deception are so widespread that many more people are reporting similar victimization.”
PYMNTS has reached out to DCG and Gemini for comment, but has not yet received a response. Both companies have said in the past that they intend to contest the lawsuit's allegations.
james sued the company last yearaccused it of not disclosing the risks associated with its crypto lending programs.
According to the complaint, Gemini misled customers by failing to disclose that third-party financing was provided to: Convicted cryptocurrency fraudster Sam Bankman Fried's cryptocurrency trading company Alameda Research is currently bankrupt.
Although the crypto sector has not been embroiled in scandals as much as in the past year, it remainsfar from integration It permeates the broader financial system, and just because it’s boring doesn’t mean it can be trusted,” PYMNTS wrote last year.
As if to underline this fact, the Solana blockchain, the Web3 network considered by cryptocurrency evangelists to be a rising star in the space, suffered a five-hour outage last week.
“Yesterday's Solana network outage marks the 11th blockchain outage in the past two years,” Akash Mahendra, head of developer relations at layer-1 blockchain Haven1, said in a statement provided to PYMNTS. Ta. “…other major blockchain networks were down for 5 hours and we cannot ignore this as nothing.
“If Solana really wants to become a blockchain for the masses, it cannot afford to continue experiencing outages, not just once a year, but forever.”
