Crypto exchange and fund accused of $1.1 billion fraud

Gemini Trust and Digital Currency Group (DCG) intentionally misled customers to save the business, the New York Attorney General believes.
Letitia James, Attorney General of the State of New York, has already filed a lawsuit accusing the cryptocurrency exchange Gemini and the Genesis Global Capital fund, which is part of DCG, of not disclosing the risk to investors associated with the cryptocurrency lending program. It was created in 2021 and collapsed a year later due to the bankruptcy of FTX and the disclosure of fraud by its CEO, Sam Bankman-Fried.
This is not the first legal battle that both companies face. In January 2023, the SEC sued them in connection with another failed business, the lender Gemini Earn.