On 13 June 2024, the New York Attorney General (AG) announced that it had recovered USD 50 million from the cryptocurrency platform Gemini Trust Company for defrauding over 230'000 investors, including 29'000 New Yorkers, through its misleading Gemini Earn program. The settlement bans Gemini from operating any crypto lending programs in New York and requires the company to return the defrauded assets to investors while also mandating cooperation with ongoing litigation against related entities and individuals. Gemini Trust Company (Gemini), Genesis Global Capital, LLC, and its affiliates (Genesis), along with Digital Currency Group, Inc. (DCG), were accused of perpetrating fraud by allegedly deceiving over 230’000 investors, resulting in losses exceeding USD 1 billion. Genesis and DCG were further alleged to have concealed their financial condition from Gemini and the public. Gemini is accused of lowering Genesis's credit rating without public announcement while continuing to promote it as low risk. Subsequent to the initial allegations, further accusations were made, asserting that the entities defrauded additional individuals and institutions of an extra USD 2 billion, bringing the total defrauded amount to over USD 3 billion. By agreeing to the settlement with the AG, Genesis neither admits nor denies the allegations of this lawsuit, and the legal action will proceed against the remaining defendants.
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