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New York General Prosecutor Office has initiated legal action against three cryptocurrency companies; Gemini, Genesis, DCG.
New York General Prosecutor Office has initiated legal action
Among the companies targeted by the Attorney General are cryptocurrency exchange Gemini, cryptocurrency loan provider Genesis, and cryptocurrency investment company Digital Currency Group (DCG). In addition, there are allegations against Genesis’ former CEO Michael Moro and DCG CEO Barry Silbert.
According to the claim, Genesis had borrowed within the context of the Gemini Earn program and it later transferred this assets to various entities, including different companies such as Three Arrows Capital and Alameda. As a result of some companies in the cryptocurrency sector going bankrupt, Genesis became unable to pay its debts, causing a total deficit of 1 billion dollars. The DCG committed to cover this deficit. However, it failed to fulfill it.
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The main allegation of the New York Attorney General’s Office is that, despite knowing that Genesis Global Capital’s lending operations were under-insured, Gemini did not disclose this important information to investors. Moreover, the lawsuit includes claims that at one point, the trading company Alameda, led by Sam Bankman-Fried, played a major role in the trading of Genesis Global Capital.
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