BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

The New York Attorney General Sues Major Crypto Companies

by BlockNews.com Team
October 28, 2023
in BUSINESS, CRYPTO, FINANCE
Reading Time: 2 mins read
A A
1
SHARES
11
VIEWS
Share on XShare in TelegramShare on Reddit
  • New York Attorney General sued Gemini, Genesis, and Digital Currency Group for allegedly defrauding over 230,000 investors out of $1 billion through the Gemini Earn program.
  • Gemini partnered with Genesis to offer Gemini Earn, allowing customers to earn interest by lending crypto, but allegedly misled investors about the risks.
  • Lawsuit alleges the companies failed to disclose concentration risk from loans to Alameda Research and conflicts of interest while using funds to prop up Alameda.

New York Attorney General Letitia James filed a lawsuit on Thursday against three major crypto companies – Gemini Trust Company, Genesis, and Digital Currency Group – alleging they defrauded more than 230,000 investors out of over $1 billion.

🚨 NEWS: @GeminiTrustCo faces a lawsuit over an alleged $1.1 billion fraud linked to their crypto-lending program.

The lawsuit claims the companies misled investors about risks in their 2021 crypto-lending venture.

This causes significant losses amid the crypto market downturn.… pic.twitter.com/Kg69d5Kajl

— BlockNews.com (@blocknewsdotcom) October 19, 2023

Background on the Companies Involved

Gemini is a crypto exchange that operated an investment program called Gemini Earn with Genesis, a crypto lender owned by Digital Currency Group. Gemini Earn allowed customers to earn interest on their crypto by lending it out through Genesis.

Details of the Alleged Fraud

The lawsuit alleges that Gemini lied to Earn investors about the program’s risks despite knowing that Genesis loans were undercollateralized and heavily concentrated.

At one point in 2022, nearly 60% of Genesis’ outstanding third-party loans were lent to FTX‘s sister hedge fund Alameda Research.

When FTX collapsed, Genesis was unable to repay all the funds lent out through Earn, leaving hundreds of thousands of customers unable to access their crypto holdings.

The attorney general accused the companies of misrepresenting the safety of the Earn program and failing to disclose the concentration risk and conflicts of interest.

By allegedly misleading investors about the risks, the companies were able to continue attracting new investment and using the funds to prop up Alameda Research.

Tags: BusinesscryptoCrypto RegulationFTXPolitics
TweetShareShare
Previous Post

The Fed’s Fight Against Inflation Continues

Next Post

British School Names Robot as Principal

DON'T MISS THESE! HOT OFF THE PRESS

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling
CRYPTO

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?
CRYPTO

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak
CRYPTO

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party
CRYPTO

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
Load More

Related News

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.