New York Attorney General Letitia James has taken legal action against three different cryptocurrency companies.
Among the names that the Attorney General took action against are cryptocurrency exchange Gemini, cryptocurrency lending firm Genesis, and cryptocurrency investment firm DCG. In addition, there are allegations against former Genesis CEO Michael Moro and DCG CEO Barry Silbert.
Allegedly, Gemini gave funds to Genesis within the scope of its Earn program. These funds are then Three Arrows Capital And AlamedaIt was loaned to different organizations including .
Due to the bankruptcy of several companies in the cryptocurrency industry, Genesis faced debt repayment and A deficit of $1 billion formed. Although DCG, to which Genesis is affiliated, said it would address this gap, it only gave the company ordinary promissory notes.
The New York Attorney General’s Office accuses those involved in this process for two different reasons. Allegedly Gemini, Earn program a highly liquid investment He collected money from people by saying that he would genesis As a result of the risk assessment carried out by the company regarding creditable He concluded that it was.
DCG, Genesis and the executives of these companies “He covered up the $1.1 billion loss by making false statements, neglecting and hiding it for months. “they closed” It is claimed.
Attorney General’s Office, defendants in New York be banned from selling securities and commoditiesin addition, demands that he pay a fine and forfeit any profits from these transactions.