The New York prosecutor has charged crypto companies Gemini, Genesis and Digital Currency Group (DCG) with defrauding more than 230,000 investors. The fraud is said to have involved more than a billion dollars. Gemini and Genesis are alleged to have lied about the risks of the investments they offered. It is the latest extensive procedure against crypto platforms in the United States following the bankruptcy of Sam Bankman-Fried’s FTX crypto exchange. Earlier this month, the trial against Bankman-Fried for fraud began.
The scandal surrounding Genesis and Gemini also affected Dutch crypto investors. At the end of last year, it emerged that the crypto exchange Bitvavo had lent 280 million euros worth of digital money from customers to Genesis.
The directors involved are primarily responsible for the losses, according to New York Attorney General Letitia James. As a result of their misleading claims, some investors lost their entire savings. “Hardworking New Yorkers and investors across the country lost more than a billion dollars because they were fed blatant lies that their money would be safe.” James demands restitution of all ill-gotten gains. (AP)
2023-10-19 22:00:00
#Public #Prosecution #Service #York #fraud #crypto #executives
