New York's Lawyer Sues Crypto Companies, Seeks $3 Billion

New York's Lawyer Sues Crypto Companies, Seeks $3 Billion

FraudLegal

By Jakub Lazurek

10 Feb 2024

2 min read

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NY Attorney General sues crypto giants Gemini & DCG, demands $3B for investor fraud.

In a strong legal move, New York's Attorney General Letitia James is making her lawsuit against crypto companies Gemini Trust and Digital Currency Group (DCG) bigger, asking for $3 billion. This increase from an earlier $1.1 billion aims to help more investors who were misled by Gemini Earn's false promises.

When the lawsuit started in October, James said Gemini, DCG, and their leaders tricked investors with untrue promises about how easy it would be to get their money back from Gemini Earn and how strong Genesis Capital was. Now, she's asking for $3 billion because the number of hurt investors has jumped to 230,000. James believes, "We really need stronger rules for cryptocurrencies," because many people have been harmed. She wants better protection for investors in the unpredictable crypto market.

During this legal fight, Genesis is also dealing with its own financial troubles, and it recently won a legal battle against Gemini over ownership of certain valuable shares. After James first sued them, Genesis also sued Gemini, trying to get back more than half a billion dollars. They say Gemini took too much money out before Genesis had financial problems. Gemini has to answer by February 21. This legal fight is very important for the crypto world. It shows how risky investing in digital currencies can be and why we need clear and fair rules.

Experts say we need to find a good balance, "Rules are important for keeping people safe but shouldn't stop new ideas from growing." Everyone is watching to see what happens in a legal meeting on March 4, which might change how digital currencies are regulated and keep investors safe. James' fight for fairness and clear rules is very important for the future of digital money. It might lead to new standards for how cryptocurrencies are regulated and protect investors.

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