New York Attorney General Expands Crypto Lawsuit Sees $3 Billion Fraud By Reuters

©Reuters. A representation of the virtual cryptocurrency Bitcoin is seen in this image taken October 19, 2021. REUTERS/Edgar Su

NEW YORK (Reuters) – New York Attorney General Letitia James on Friday expanded her case against Digital Currency Group and other cryptocurrency-related defendants, tripling the scope of their alleged fraud scheme to more than $3 billion.

James in October sued Digital Currency, his Genesis Global Capital unit, and Gemini Capital, the exchange run by twin brothers Cameron and Tyler Winklevoss.

It said it caused more than $1 billion in losses by deceiving investors about Gemini Earn, a program that allows customers to lend cryptocurrencies to Genesis in exchange for a promised high rate of return.

James said in a statement that other investors have since come forward to complain, and it has become clear that the complicated fraud also ensnared other investors who sent money directly to Genesis.

James is seeking more than $3 billion in restitution for the more than 230,000 investors he believes were defrauded.

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