Gemini, Genesis and DCG charged with fraud

After the FTX scandal, Gemini, Genesis and DCG are under financial pressure. Now the three crypto companies have been sued.

Attorney General Letitia James of New York is suing Gemini, Genesis Global and Digital Currency Group (DCG) for defrauding about 230,000 investors of more than a billion US dollars.

In addition, former Genesis CEO and DCG founder Barry Silbert are under pressure. They are accused of hiding the credit department's poor financial situation.

Gemini lied to customers of its Earn program and hid abuses, they say. According to an analysis obtained by prosecutors, the financial product had been classified as risky as early as February 2021.

"This fraud is yet another example of bad actors causing harm in the under-regulated crypto industry," James said in a statement.

Following the bankruptcy of FTX, DCG and Gemini were under financial pressure and asked Genesis to file for bankruptcy in January.