The New York Attorney General's Office has expanded its lawsuit against Digital Currency Group (DCG), alleging that the extent of fraud committed by the company is more than $3 billion, three times the initial estimate.
New York Attorney General Letitia James today expanded her lawsuit against Digital Currency Group and other cryptocurrency defendants, tripling the size of the alleged fraud scheme to more than $3 billion. James filed the lawsuit in October against Digital Currency, a unit of Genesis Global Capital, and Gemini Capital, the exchange run by twin brothers Cameron and Tyler Winklevoss.
The attorney general alleged that they caused losses of more than $1 billion by misleading investors about Gemini Earn, a program that allowed customers to lend crypto assets to Genesis in exchange for a promised high rate of return.
Other investors have since complained, James said in a statement, and it appears the complex scam also ensnared other investors who sent money directly to Genesis. James is seeking more than $3 billion in damages for more than 230,000 investors he believes were defrauded.
*This is not investment advice.
