United States of America: Announced AG public lawsuit against cryptocurrency companies Gemini, Genesis and DCG for allegedly defrauding investors

On 19 October 2023, the New York Attorney General (AG) filed a lawsuit against cryptocurrency companies Gemini, Genesis, and DCG for allegedly defrauding investors. Gemini Trust Company (Gemini), Genesis Global Capital, LLC and its affiliates (Genesis), and Digital Currency Group, Inc. (DCG) are accused of having committed fraud by deceiving more than 230'000 investors and causing losses of over USD 1 billion. Genesis and DCG are alleged to have hidden their financial condition from Gemini and the public. Gemini is alleged to have decreased Genesis's credit rating but not to have announced it and continued to promote it as low risk. The AG is asking the court to impose a ban on the financial investment activities of Gemini, Genesis, and DCG, as well as the compensation of the affected investors and the retention of illegally obtained profits.