Expanded Lawsuit Seeks over $3 Billion in Restitution for Crypto Fraud
New York Attorney General Letitia James has taken a decisive turn in the crypto case against DCG by significantly expanding her lawsuit against Digital Currency Group and other defendants in the industry. Initially focused on an alleged $1 billion fraud involving the Gemini Earn program, this lawsuit has now taken on a new dimension with allegations estimated at over $3 billion.
An Expanded Investigation
In October, Letitia James filed a lawsuit against Digital Currency Group, Barry Silbert’s subsidiary Genesis Global Capital, and Gemini Capital, led by the Winklevoss twins. The accusation revolved around the loss of over $1 billion by investors who were misled by the high yield promises of the Gemini Earn program.
Since then, new complaints from investors have revealed a more complex and extensive fraud, affecting those who had invested directly in Genesis as well.
Towards Restitution of Over $3 Billion
Faced with the magnitude of the damages, the New York Attorney General now aims to obtain over $3 billion in restitution for the more than 230,000 affected investors.
