In a statement released on Friday, February 9, Attorney General Letitia James accused DCG of concealing the true extent of their wrongdoing. The NYAG’s investigation showed that a greater number of New York citizens fell victim to the fraudulent Gemini Earn lending program than previously disclosed in the lawsuit.
“The NYAG’s original lawsuit primarily focused on the losses suffered by retail investors who participated in the Gemini Earn investment program. However, as more victims came forward and filed complaints with law enforcement, it became evident that DCG’s elaborate fraud had affected a significantly larger number of investors,” stated the District Attorney’s office.
Letitia James stated that the actual magnitude of Digital Currency Group’s fraud surpassed $3 billion, more than triple the original claims made by New York prosecutors.
Recent reports also confirmed that the management of Genesis Global, a bankrupt crypto lender and a subsidiary of Digital Currency Group, settled a civil lawsuit with the US Securities and Exchange Commission (SEC) and agreed to pay a fine of $21 million.