New York Attorney General Letitia James announced that she has expanded her lawsuit against Digital Currency Group and their crypto firms to more than $3 billion. Indeed, the expansion now states a fraud scheme led to losses that triple the size of the original allegations, according to a Reuters report.
James sued Digital Currency Group, Genesis Global Capital Unit, and Gemini Capital in a complaint that was filed in October. Moreover, at the time, she alleged that the collective caused more than $1 billion in losses through the Gemini Earn program. Those losses have now been magnified.
Also Read: Gemini in Hot Water: Genesis Seeks Recovery of $689M in Lawsuit
NY Attorney General Triples Size of Crypto Lawsuit
Over the last year, the digital asset industry has had to navigate a plethora of fraudulent activity. Whether it be the highly publicized collapse of TerraUSD or the massive FTX fall in November. The youthful crypto identity has been seeking to move toward regulation while clamping down on bad actors.
In a rather shocking development, New York Attorney General Letitia James has expanded a crypto lawsuit to more than $3 billion. Indeed, James filed a complaint against Digital Currency Group and various others regarding the Gemini Earn program. The lawsuit originally claimed $1 billion in losses through the misleading of investors. However, that figure has now tripled.
Also Read: Genesis Crypto Broker Halts Withdrawals
According to the initial report, James claimed that “additional investors have since come forward” since the complaint was filed. Subsequently, James stated that this “complicated fraud also ensnared other investors who sent money directly to Genesis.”
Now, James is seeking $3 billion in restitution for over 230,000 investors. She claims that these investors were all defrauded by the Gemini Earn program and the entities named in the complaint. Conversely, Earlier today, Genesis Global announced a settlement in the Attorney General’s Lawsuit. The development should be a benefit to its ongoing bankruptcy hearings.