{"id":2073556,"date":"2023-10-19T20:34:02","date_gmt":"2023-10-20T00:34:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptocurrency-companies-sued-over-alleged-1-1b-in-fraud\/"},"modified":"2023-10-19T20:34:02","modified_gmt":"2023-10-20T00:34:02","slug":"cryptocurrency-companies-sued-over-alleged-1-1b-in-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cryptocurrency-companies-sued-over-alleged-1-1b-in-fraud\/","title":{"rendered":"Cryptocurrency Companies Sued Over Alleged $1.1B In Fraud"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcryptocurrency-companies-sued-over-alleged-1-1b-in-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2073556&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">(Photo by Dan Kitwood\/Getty Images)<\/figcaption><\/figure>\n<p>OAN\u2019s\u00a0<a href=\"https:\/\/www.oann.com\/tag\/stephanie-stahl\">Stephanie Stahl<\/a><br \/>5:30 PM \u2013 Thursday, October 19, 2023<\/p>\n<p>New York state prosecutors have filed a lawsuit against three cryptocurrency firms, alleging that the companies engaged in fraudulent activities that resulted in more than 230,000 investors losing a collective $1.1 billion.\u00a0<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>On Thursday, New York Attorney General Letita James filed the lawsuit against Crypto firms Genesis Global, its parent company Digital Currency Group (DCG), and Gemini. The lawsuit points to a series of errors, including inadequate risk management concerning their exposure to FTX, the bankrupt trading firm led by Sam Bankman-Fried.\u00a0<\/p>\n<p>Prosecutors allege that Digital Currency Group as well as its subsidiaries and affiliates lied to investors, created fraudulent financial documents, and withheld information from creditors.\u00a0<\/p>\n<p>The lawsuit revolves around a program called Gemini Earn, which was advertised to customers as a safe way to earn up to 8% interest on cryptocurrency holdings. <\/p>\n<p>In this program, the cryptocurrency assets from Gemini customers were combined and loaned to a crypto lender named Genesis. Genesis, in turn, lent these assets to large institutions and shared a portion of the profits.<\/p>\n<p>These crypto services were presented to the public as an improved alternative to traditional bank savings accounts.\u00a0However, Attorney General James alleges that the Gemini Earn program was much riskier than what was portrayed in its marketing. <\/p>\n<p>The lawsuit claims that Gemini knew from the beginning that the loans made by Genesis were extremely high-risk and concentrated among a small number of third parties, specifically Alameda Research, a sibling company of FTX.<\/p>\n<p>If any of Genesis\u2019s major borrowers were to default on their loans, Gemini customers could lose their invested funds. When Genesis faced financial troubles due to the FTX situation in November 2022 and subsequently filed for bankruptcy two months later, Gemini Earn customers lost access to approximately $900 million of their money.<\/p>\n<p>In January, Gemini and Genesis were also already sued by the Securities and Exchange Commission over the Gemini Earn program, which the regulator claimed constituted an unregistered securities offering. However, the charges brought by the New York attorney general are more extensive.<\/p>\n<p>The attorney general alleges that Gemini did not adequately inform its customers about the risks involved, while Genesis and DCG (Digital Currency Group) failed to evaluate the quality of the loans they issued.\u00a0<\/p>\n<p>Furthermore, it is alleged that they attempted to hide the losses incurred in mid-2022 when hedge fund Three Arrows Capital and another smaller party defaulted on loans totaling $1.1 billion.\u00a0<\/p>\n<p>Both DCG CEO Barry Silbert and Genesis CEO Michael Moro, who are named in the case as defendants, are accused of making misleading public statements about Genesis\u2019s financial condition.<\/p>\n<p>In a post on X, formerly known as Twitter, Gemini said it \u201clooks forward to defending ourselves\u201d against the lawsuit.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote data-service=\"twitter\" data-category=\"marketing\" data-placeholder-image=\"https:\/\/c3.oann.com\/wp-content\/plugins\/complianz-gdpr\/assets\/images\/placeholders\/twitter-minimal.jpg\" class=\"cmplz-placeholder-element twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today, the <a href=\"https:\/\/twitter.com\/NewYorkStateAG?ref_src=twsrc%5Etfw\">@NewYorkStateAG<\/a> sued Genesis, its former CEO <a href=\"https:\/\/twitter.com\/michaelmoro?ref_src=twsrc%5Etfw\">@michaelmoro<\/a>, its parent company <a href=\"https:\/\/twitter.com\/DCGco?ref_src=twsrc%5Etfw\">@DCGco<\/a>, and DCG\u2019s CEO <a href=\"https:\/\/twitter.com\/BarrySilbert?ref_src=twsrc%5Etfw\">@BarrySilbert<\/a> personally for conspiring to lie and defraud Gemini, Earn users, and other Genesis creditors. The NY AG\u2019s lawsuit confirms what we\u2019ve been saying all along\u2026<\/p>\n<p>\u2014 GeminiTrustCo (@GeminiTrustCo) <a href=\"https:\/\/twitter.com\/GeminiTrustCo\/status\/1714984800660926608?ref_src=twsrc%5Etfw\">October 19, 2023<\/a><\/p><\/blockquote>\n<p><script type=\"text\/plain\" data-service=\"twitter\" data-category=\"marketing\" async data-cmplz-src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script> <\/div>\n<\/figure>\n<p>Through the lawsuit, Attorney General James will be seeking restitution for investors and \u201cdisgorgement of ill-gotten gains,\u201d along with a ban that would prevent all the three cryptocurrency firms from conducting business in the financial investment industry in New York.<\/p>\n<p>Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. <a href=\"https:\/\/www.oann.com\/alerts\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.oann.com\/alerts<\/a><\/p>\n<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-4\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-4'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\tShare this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>This week, the world witnessed a remarkable operation as nearly 300 trapped American citizens were safely flown out of Israel to Florida amid the Israel-Hamas war. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Radical leftist Hamas supporters gather at the Capitol led by Representatives Rashida Tlaib and Cori Bush. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>As Iranian-backed Hamas launches attacks on Israel, many believe these actions have the fingerprints of another ally, China. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Noel Fritsch<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Meta and TikTok have been given a week to provide details on measures taken to counter the spread of terrorist, violent content and hate speech on their platforms.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Netflix increased subscription prices for some streaming plans as it shattered expectations for new customers.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>While stripping China\u2019s access to key U.S. artificial intelligence chips, the Biden administration\u2019s sweeping new rules also quietly threw Nvidia, Intel and AMD a potential lifeline.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Stanford researchers issued a report measuring the transparency of artificial intelligence foundation models from companies like OpenAI and Google.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>(Photo by Dan Kitwood\/Getty Images) OAN\u2019s\u00a0Stephanie Stahl 5:30 PM \u2013 Thursday, October 19, 2023 New York state prosecutors have filed a lawsuit against three cryptocurrency firms, alleging that the companies engaged in fraudulent activities that resulted in more than 230,000 investors losing a collective $1.1 billion.\u00a0 Advertisement On Thursday, New York Attorney General Letita James<\/p>\n","protected":false},"author":2416,"featured_media":2073557,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2073556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2073556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2416"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2073556"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2073556\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2073557"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2073556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2073556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2073556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}