Digital Currency Group and Gemini are being sued in New York for allegedly defrauding more than 230,000 investors of $1.1 billion. Prosecutors claim that they mishandled risks tied to a fraudulent crypto trading firm, lied to investors, created false documents, and concealed information. Genesis, a Digital Currency Group subsidiary, is accused of
failing to properly audit a risky counterparty and hiding financial troubles. Gemini, founded by the Winklevoss twins, faces accusations of not addressing exposure to the same risky firm. Prosecutors seek to ban these companies from securities work in New York and demand restitution.
Both companies deny wrongdoing and consider themselves victims of a fraud.
- New York sues Digital Currency Group and Gemini for $1.1 billion fraud.
- Allegations include mishandling risks, lying to investors, and creating false documents.
- Genesis, a Digital Currency Group subsidiary, is accused of failing to properly audit a risky counterparty.
- Gemini faces accusations of not addressing exposure to the same risky firm.
- Prosecutors seek to ban these companies from New York securities work and demand restitution, while both companies deny wrongdoing and claim to be victims of fraud.