Gemini, Genesis, DCG Sued by New York Attorney General for Allegedly Defrauding Investors

New York Attorney General Letitia James contiguous filed a suit against cryptocurrency companies the Gemini Trust Company (Gemini), trading steadfast Genesis Global Capital, and crypto conglomerate Digital Currency Group (DCG) for allegedly defrauding much than 230,000 investors, including astatine slightest 29,000 New Yorkers, of much than $1 billion.

The suit alleges that Gemini knew Genesis’ loans were undersecured and astatine 1 constituent highly concentrated with 1 entity, Sam Bankman-Fried's trading steadfast Alameda, but did not uncover this accusation to investors.

Spokespeople for DCG, Gemini and Genesis did not instantly respond to a petition for remark from CoinDesk.

Genesis and CoinDesk are owned by Digital Currency Group.

THIS IS A DEVELOPING STORY.

(Jack Schickler contributed reporting.)