TechFlow news, according to Fortune magazine, New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange Gemini, crypto lending firm Genesis, and its parent company Digital Currency Group (DCG).
The complaint alleges that these crypto firms defrauded more than 230,000 investors, including at least 29,000 New York residents, resulting in losses exceeding $1 billion.
Gemini and Genesis were previously involved in a series of lawsuits over an investment product called Gemini Earn, and the U.S. Securities and Exchange Commission also filed litigation. These latest allegations mark another legal blow for the crypto empire led by the Winklevoss brothers and DCG CEO Barry Silbert.
The lawsuit details the case of one victim who invested her life savings of $199,000 into Gemini Earn, reportedly encouraged by its "marketing statements."
Letitia James' office has shown aggressive enforcement in regulating cryptocurrencies, including actions against stablecoin issuer Tether and its affiliated company Bitfinex, as well as former Celsius CEO Alex Machinsky.
The lawsuit demands that Gemini, Genesis, and DCG cease conducting securities- and commodities-related business in New York, pay restitution to investors, and disgorge ill-gotten gains.
