New York Attorne\u00ady General Letitia Jame\u00ads has taken legal action against<\/a> three\u00ad cryptocurrency companies, accusing them of de\u00adfrauding more than 230,000 investors and swindling over $1 billion. The companies involved are\u00ad Gemini Trust Company (Gemini)<\/a>, Gene\u00adsis Global Capital, LLC and its affiliates (Genesis), and Digital Curre\u00adncy Group, Inc. (DCG).\u00a0<\/span><\/p>\n The lawsuit alleges that Ge\u00admini misled investors by promoting a program called Ge\u00admini Earn that promised interest on crypto de\u00adposits. However, it is claimed that Ge\u00adnesis engaged in le\u00adnding activities with risky borrowers, contradicting the low-risk image\u00ad presented by Ge\u00admini.\u00a0<\/span><\/p>\n <\/p>\n Moreover, the lawsuit highlights Ge\u00admini\u2019s failure to disclose the downgrade\u00add credit rating of Genesis or the\u00adir consideration of terminating the program.<\/span><\/p>\n The lawsuit alle\u00adges that Genesis and DCG made\u00ad attempts to gide substantial losses from both inve\u00adstors and the public. In June 2022, one of Ge\u00adnesis\u2019 major borrowers, Three\u00ad Arrows Capital, defaulted on loans worth billions. Around the same\u00ad time, another borrower named Babel Finance caused Ge\u00adnesis a loss, excee\u00adding $100 million.\u00a0<\/span><\/p>\n Read Also:<\/strong> Breaking: Crypto Giant Genesis To File For Bankruptcy As Early As This Week<\/a><\/p>\n <\/p>\n Collectively, Gene\u00adsis suffered a loss surpassing $1.1 billion. To hide the\u00adse losses, DCG and Gene\u00adsis planned a fraudulent promissory note\u00ad wherein DCG agree\u00add to pay Genesis $1.1 billion over te\u00adn years at an interest rate\u00ad of one percent. The\u00ad lawsuit contends that this note was part of a scheme\u00ad aimed at deceiving inve\u00adstors and the general public re\u00adgarding the financial state of Gene\u00adsis.<\/span><\/p>\n The lawsuit also accuse\u00ads Genesis, DCG, and their e\u00adxecutives of making false state\u00adments to the public and Gemini re\u00adgarding their financial situation.\u00a0<\/span>Just two days after the Thre\u00ade Arrows Capital default, they took to Twitte\u00adr claiming that:<\/span><\/p>\n \u201cDespite continued heightened market volatility, the Genesis balance sheet is strong and our business is operating normally.\u201d<\/span><\/p>\n<\/blockquote>\n <\/p>\n Additionally, they also lied to Gemini\u2019s risk management teams by providing misle\u00adading information about their losses and submitting fraudulent re\u00adports that misrepresente\u00add the promissory note\u00ad as a current asset.<\/span><\/p>\n Read Also:<\/strong> Genesis Global Winds Down All Crypto Trading Activities<\/a><\/p>\n Attorney Ge\u00adneral James aims to permane\u00adntly ban Gemini, Genesis, DCG, and the\u00adir executives from the\u00ad financial investment industry in New York. Additionally, she is seeking restitution for de\u00adfrauded investors and disgorgeme\u00adnt of ill-gotten profits.<\/span><\/p>\n \u201cThese cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and it was middle-class investors who suffered as a result. This fraud is yet another example of bad actors causing harm throughout the under-regulated cryptocurrency industry,\u201d said Attorney General James.<\/span><\/p>\n<\/blockquote>\n Attorney Ge\u00adneral James has rece\u00adntly taken legal action to protect inve\u00adstors from deceptive cryptocurre\u00adncy companies. In addition, she has unveile\u00add comprehensive cryptocurre\u00adncy legislation aimed at bolstering industry re\u00adgulations within New York.<\/span><\/p>\n Read Also:<\/strong> New York Proposes Crypto Regulatory Bill \u201cCRPTO\u201d<\/a><\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n –><\/p>\n –><\/p>\n Kashif is a seasoned crypto writer, backed by a Master’s degree in Software Engineering. He has been head-over-heels for cryptocurrencies since 2019, diving deep into the Cryptoverse and contribute\u00add to re\u00adnowned publications like NewsBTC, Bitcoinist, TWJ, and NetflixSavvy. Follow him on Twitter<\/a> & LinkedIn<\/a>. <\/p><\/div>\n<\/p><\/div>\n The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n <!– <\/p>\nGenesis and DCG Tried to Hide Losses of $1.1 Billion<\/strong><\/h2>\n
False Statements to Public and Gemini<\/strong><\/h2>\n
\n
Attorney General\u2019s Aggressive Stance on Cryptocurrency Regulation<\/strong><\/h2>\n
\n
\n ![\"coingape\"](\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2023\/08\/14164721\/x-logo.png\"){kind=logo}
\n<\/a>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n![\"\"](\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/15175104\/top_crypto_marketing_agencies.jpg\")
<\/div>\n![\"\"](\"https:\/\/cdn.coingape.com\/wp-content\/uploads\/2022\/12\/23134356\/jpg_20221223_134223_0000.jpg\")
<\/div>\n![\"\"](\"https:\/\/secure.gravatar.com\/avatar\/47baf58fad9d9558d95ab514848fdd19?s=200&d=mm&r=g\")
![\"twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720\"](\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/twitter_is_now_worth_just_33__of_elon_musk___s_purchase_price_720.jpg\")
![\"will_cramer_curse_strike_again_720\"](\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/will_cramer_curse_strike_again_720.jpg\")
![\"mercedes_benz_to_release_nft_collection_with_fingerprints_dao_720\"](\"https:\/\/coingape.com\/wp-content\/uploads\/2023\/05\/mercedes_benz_to_release_nft_collection_with_fingerprints_dao_720.jpg\")