Estimated damages in prosecutors' lawsuit against DCG rise to $3 billion

  • The lawsuit against Gemini, Genesis, and DCG by the New York State Attorney General’s Office has seen increased damages.
  • Authorities have identified new victims affected by the alleged fraud, resulting in a total loss of $3 billion.

The New York State Attorney General’s Office recently provided new information about the case against Digital Currency Group (DCG). These details indicate that the damage caused by the alleged fraud now exceeds the previous estimate, reaching a staggering $3 billion.

In mid-October 2023, Attorney General Letitia James filed a lawsuit accusing Gemini, Genesis, DCG, and certain high-ranking executives of fraud and concealing risks. The lawsuit alleged that Genesis, a DCG subsidiary, failed to inform customers that most of the loans in the Earn program were inadequately secured. Meanwhile, Gemini actively promoted the initiative.

In addition to the lawsuit, the Prosecutor General’s office revealed the existence of new victims in the case. This discovery contributed to the increased damages, now totaling $3 billion as a result of the parties’ alleged fraudulent activities.

It is worth mentioning that the initial lawsuit stated that approximately 230,000 investors had been defrauded. According to the Prosecutor General’s office, these investors suffered losses due to misleading assurances about the safety of their deposits.

A representative of the holding company responded to the Prosecutor General’s statement, stating, “There’s nothing new here, honestly. DCG and CEO Barry Silbert are confident they will be acquitted.”