Gemini, DCG, Genesis Sued by New York Attorney General

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New York Attorney General Letitia James today filed a lawsuit against cryptocurrency companies the Gemini Trust Company, trading firm Genesis Global Capital, and crypto conglomerate Digital Currency Group (DCG) for allegedly defrauding more than 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion. The lawsuit alleges that Gemini knew Genesis’ loans were undersecured and, at one point, highly concentrated with one entity, Sam Bankman-Fried’s trading firm Alameda, but did not reveal this information to investors. Spokespeople for DCG, Gemini and Genesis did not immediately respond to a request for comment from CoinDesk. Genesis and CoinDesk are owned by Digital Currency Group.

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