It has just revealed the fact that there are at least important financial entities that have been massively lying to investors. Check out the latest news in the crypto market below.
Gemini, Genesis and DCG lies exposed
According to the latest reports, the lies of Gemini, Genesis, and DCG have been just exposed. The three financial institutions have reportedly lied to investors, and they hid all the losses.
The new reports say that the New York State Attorney General (AG) Letitia James is suing the three large crypto firms for allegedly defrauding over 230,000 Americans.
As noted by the online publication the Daily Hodl, in a new press release, AG Letitia James says that she is taking legal action against the crypto exchange Gemini, the lending firm Genesis, and the investment giant Digital Currency Group (DCG).
This is reportedly happening over allegations that the companies attempted to conceal $1.1 billion in losses and “repeatedly lied” to its investors.
The Daily Hodl notes the fact that an investigation has been able to get the truth out, revealing that Gemini lied to investors about the risks of its Gemini Earn program.
Just in case you don’t know, the program aimed to provide customers with the yield on their crypto assets. Gemini partnered with Genesis to facilitate the service.
“James also alleges that at one point, Genesis’ loans were “undersecured” and on one occasion concentrated within Alameda Research, the trading arm of now-bankrupt crypto exchange FTX and under control by its disgraced CEO Sam Bankman-Fried,” the online publication mentioned above notes.
The lawsuit also directs charges at former Genesis CEO Soichiro Moro and DCG CEO Barry Silbert, the same publication that we mentioned above notes.
They also offer some new insights into what happened via some interesting quotes.
New York State Attorney General stated the following:
“These cryptocurrency companies lied to investors and tried to hide more than a billion dollars in losses, and it was middle-class investors who suffered as a result…”
The notes continued and revealed the following:
“Hardworking New Yorkers and investors around the country lost more than a billion dollars because they were fed blatant lies that their money would be safe and grow if they invested it in Gemini Earn. Instead, Gemini hid the risks of investing with Genesis, and Genesis lied to the public about its losses.”
The notes continued and stated the fact that such fraud “is yet another example of bad actors causing harm throughout the under-regulated cryptocurrency industry. My office will continue our efforts to stop deceptive cryptocurrency companies and push for stronger regulations to protect all investors.”
Stay tuned for more details about the matter and other similar events that have taken place in the crypto space.
