News View Non-AMP

Gemini, Genesis, and DCG Accused of $1 Billion Investor Fraud

Published by
Mustafa Mulla

On Thursday, Letitia James, the Attorney General of New York, filed a lawsuit against Gemini Trust, Genesis Global, and Digital Currency Group (DCG). The lawsuit claims that these entities defrauded over 230,000 investors, resulting in losses exceeding $1 billion.

This legal action also implicates former Genesis CEO Soichiro “Michael” Moro and DCG founder and chief, Barry Silbert, for allegedly hiding the true financial state of their lending unit, Genesis, from Gemini exchange, its customers, and the public.

Were Investors Misled?

The lawsuit alleges that Genesis lent significant amounts to various companies. When these companies later faced financial difficulties, Genesis incurred substantial losses. In response, Gemini is accused of trying to hide these losses by promising to pay them later.

Letitia James claims that both Gemini and Genesis misled their customers by presenting their investment program as secure and trustworthy. However, the lawsuit asserts that the firms failed to disclose their high concentration of loans with Alameda. It also accuses other executives of hiding a massive $1.1 billion loss.

Also Read: Gemini Earn Controversy: $282M Belongs to Users, Platform Claims

This Seems Familiar, Doesn’t It?

The concerns raised against Gemini, Genesis, and DCG are similar to those surrounding another insolvent exchange, FTX, and its affiliated company, Alameda. These concerns include acquiring significant loans while not adequately managing associated risks and maintaining a veil of secrecy around their financial dealings

Legal Remedies

The lawsuit seeks to provide restitution for investors who were allegedly deceived and to require the return of any gains obtained through deceitful practices.

The allegations against Gemini, Genesis, and DCG are serious. Do you think they’ll be able to regain the trust of investors?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Pi Coin Price Prediction: Can PI Bounce Back After Recent 68% Drop?

Pi Network (PI) has been trapped in the wider crypto market bearish outlook. The mid-cap…

April 1, 2025

Japan Crypto Regulation: Major Shift as Digital Assets Could Be Classified as Financial Products

Japan is making big moves to regulate crypto, and it could change the game for…

April 1, 2025

Scam Alert: Fake Gemini Bankruptcy Emails Circulating!

Scam emails are making the rounds in the crypto community, falsely claiming that Gemini is…

April 1, 2025

Ethereum Price Prediction 2025: Can ETH Recover or Will It Crash Further?

The wider cryptocurrency market opened the last week of the first quarter of 2025 with…

April 1, 2025

Big News: SEC Moves Forward with $150 Million Lawsuit Against Elon Musk

According to ABC News, the Securities and Exchange Commission has decided to continue it’s $150…

April 1, 2025

Crypto News 1st April : Gemini Bankruptcy, Hang Seng Index, Pi Crypto Price , Ethereum Price live

April 1, 2025 05:58:10 UTC Pi Network News: Ad Network Integration Begins, Boosting App Monetization…

April 1, 2025