New York’s attorney general has updated the lawsuit against cryptocurrency giant Digital Current Group, which is seeking to recover $3 billion, rather than $1 billion, from defrauded investors.
Last October, the New York Attorney General’s Office sued Genesis Global Capital, Gemini Trust, and DCG, alleging that the cryptocurrency companies “lied to investors and attempted to hide more than $1 billion in losses.”
The lawsuit at the time said it would seek $1 billion in damages. But an amended lawsuit filed today claims more investors were defrauded and is seeking $2 billion in additional funds as a result.
“The fraud and deception were so widespread that more and more people are reporting similar harm,” Attorney General Letitia James said in the amended complaint.
Regarding this, DCG said: decryption The updated complaint is meaningless.
A DCG spokesperson said: “There is nothing new here. This is the same baseless complaint that has been recirculated to generate yet another media headline.” “We will vigorously fight the lawsuit and we will win. DCG has always conducted business legally and honestly, and DCG and Barry Silbert will be fully vindicated.”
“These illegal cryptocurrency schemes and the devastating financial losses suffered by real people are yet another reminder of why we need stronger cryptocurrency regulation to protect all investors,” she added.
James’ office said in a statement that the companies defrauded more than 230,000 investors out of more than $3 billion.
DCG is a large digital asset conglomerate. Genesis is one of many companies that operate to allow users to earn cash for their cryptocurrency holdings.
Genesis went bankrupt last year but provided funding to cryptocurrency exchange Gemini for its Earn program.
Investors used the Earn program to earn cash in cryptocurrency.
The lawsuit originally alleged that Gemini lied to investors about their investments through Genesis. But the updated lawsuit says it later became clear that “due to the complex nature of the fraud, other investors who contributed money directly to Genesis, an affiliate of DCG, were also defrauded.”
This article has been updated to include comments from DCG. editor: Ryan Ozawa.
