Estimated damages in prosecutors’ lawsuit against DCG rise to $3 billion

  • The New York State Attorney General’s Office has increased damages in its lawsuit against Gemini, Genesis and DCG.
  • Authorities announced new victims as a result of the alleged fraud of the mentioned parties.
  • As a result, the amount of losses reached $3 billion.

The New York State Attorney General’s Office has announced new details in the case against Digital Currency Group (DCG). Authorities indicated that the damage from the alleged fraud exceeds previously stated and reached $3 billion.

Let us recall that Attorney General Letitia James filed a lawsuit against Gemini, Genesis, DCG and some top managers in mid-October 2023. She accused them of fraud and hiding risks.

According to the case, Genesis, a DCG subsidiary, concealed from customers the fact that most of the Earn loans were undersecured. Gemini, in turn, promoted the initiative.

In addition to the lawsuit, the Prosecutor General’s office stated that there were new victims in the case. This increased the damages from the parties’ alleged fraud to $3 billion.

Let us note that earlier the lawsuit included a figure of 230,000 allegedly defrauded investors. The prosecutor’s office said they suffered damages due to false assurances about the safety of deposits.

In a comment to The Block, a representative of the holding noted the following:

“There is nothing new here (in the statement of the prosecutor’s office), honestly. DCG and Barry Silbert (CEO of the company) will be acquitted. We are confident of this.”

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