New York State’s protest against cryptocurrency conglomerate Digital Currency Group (DCG) is reaching new heights, Attorney General Letitia James is pursuing accountability of the company for the alleged $3 billion losses sustained by the investors. This development significantly expands the scope of the initial lawsuit which alleged $1 billion in damages.

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• New York Attorney General Letitia James has escalated the fraud case against Digital Currency Group to $3 billion in investor losses.
• The case expansion follows numerous investor complaints regarding the defunct Gemini Earn program and Genesis’s direct investment practices.
• DCG refutes the allegations, asserting lawful and ethical business conduct, while the State calls for stricter cryptocurrency regulations to protect investors.

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New York Attorney General Escalates Case Against Crypto Firm to $3 Billion

Central to the allegations is the now-defunct Gemini Earn program, a collaborative initiative between DCG’s Genesis lending platform and Gemini Trust Co. As per the Attorney General, James, the entities under scrutiny gave a false sense of protection to investors on the safekeeping of their funds while they knew that they could lose the assurance any time.

Following the lawsuit’s filing in October, an influx of investor complaints against Genesis’s direct investment activities has led to the broadening of the case. The New York Supreme Court is set to address the expanded claims brought forth by approximately 230,000 aggrieved parties.

Attorney General James has publicly decried the extent of the alleged fraudulent activities, emphasizing that the case’s growth was necessitated by the additional accounts of financial damage received. She underlined as the warning cry the saddening financial losses that many suffered as a reason to have stronger regulations on crypto to protect investors better.

​ In the face of intensified legal action, a DCG spokesperson has condemned the moves of the Attorney-General as sensationalist, describing the suit as baseless. Despite facing the accusation, DCG is certain and bold to defend its lawful and principled business conduct by CEO Barry Silbert, and they would be seen defending the claims positively.

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