New York’s attorney general, Letitia James, has filed a lawsuit against cryptocurrency firms Gemini, Genesis, and Digital Currency Group (DCG) for allegedly defrauding investors through the Gemini Earn investment program. The lawsuit claims that the companies deceived over 23,000 investors, including 29,000 New York citizens, out of more than $1 billion. According to the investigation conducted by James’ office, Gemini misled investors about the low-risk nature of the Gemini Earn program, which it operated in partnership with Genesis. The lawsuit alleges that Gemini was aware of the risky financials of Genesis, including its undersecured loans and concentration with one entity, but failed to disclose this information to investors. Genesis, its former CEO Soichiro Moro, DCG, and its CEO Barry Silbert are also charged with attempting to conceal over $1.1 billion in losses. The lawsuit seeks to ban the companies from operating in the financial investment industry in New York and aims to secure restitution for investors and the return of ill-gotten gains. Attorney General James emphasized the losses suffered by middle-class investors and criticized the under-regulated cryptocurrency industry for allowing bad actors to cause harm.

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Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	1
People	Sam Bankman-Fried, Barry Silbert, Soichiro Moro, Letitia James
Companies	Genesis, Digital Currency Group, Alameda, DCG, Gemini
Currencies	None
Securities	None