New York’s attorney general, Letitia James, has expanded a lawsuit against three cryptocurrency companies with a scheme amounting to $3 billion, the three folds of the original alleged.
The lawsuit has DCG, Genesis Global Capital as its defendants and Gemini Trust as its plaintiff and it is alleging that the three parties have been misleading their investors over the Gemini Earn program. The program enabled consumers to loan their coins for high returns, but it is claimed that the organizations concealed risks and misrepresented the safety of customers’ funds.
According to an investigative media report, about 230,000 investors had been defrauded, with reported losses standing more than $2 billion, coming since the $1 billion lawsuit. James asserts the companies deceived investors who, in turn, perceived the actions that the companies allegedly engaged in as fraud.
DCG and Gemini both have rejected the accusations and plan to fight the legal charges. The case shows that the crypto regulation issue stays relevant and the need for transparency in the sector is obvious.