Crypto Legal Drama in New York... No, Not SBF

By Isabelle Castro Margaroli

This month New York is becoming the epicenter of crypto legal action. While SBF’s trial continues, New York Attorney General Letitia James has taken aim at another trio of crypto giants.?

Today, James?filed a lawsuit?against Gemini, Genesis, and Digital Currency Group (DCG) for (allegedly) defrauding more than 230,000 investors to the tune of $1.1 billion.?She is seeking to ban all three from the financial investment industry in the state of New York.

The filing tells of a ring of deception.?

According to James, Genesis and it’s parent company, DCG, lied to the public about its losses, working together to plug a hole in Genesis amounting to over $1 billion.?

Gemini apparently added fuel to their deception, cashing out on investments in Genesis through Gemini Earn despite being aware of the company’s precarious situation.?James stated that despite being aware of Genesis' risky situation, Gemini conveyed the investments to be “safe,” causing investors to go all in and, on a number of occasions, lose their life savings.?

Gemini is?playing the victim, supporting the action against Genesis but (of course) disagreeing with the decision to include Gemini. Not sure about their logic on that one.?

The whole thing sounds shady and, if found to be true, is another score point for those trying to clean up the crypto sector.?

FEATURED

NYAG Sues Genesis, Gemini, DCG for Defrauding Crypto Investors of $1 Billion

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"It was middle-class investors who suffered," said NYAG Letitia James of the charges that the three entities defrauded 232,000 investors.

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ALSO MAKING NEWS

• USA: US Clearinghouse DTCC Buys Securrency to Deepen Blockchain PushDepository Trust & Clearing Corp. agreed to buy startup Securrency Inc, part of the main US stock-market clearinghouse’s drive to offer blockchain technology and services for functions like post-trade processing of tokenized assets.
• USA: Citi inks deal with fintech Navan, says 'not having to file an expense report is like nirvana'The fintech and the card giant announced a new, jointly branded travel and expense system designed for Citi Commercial (CCB) cardholders.
• LatAm: As U.S.-China tensions rumble on, fintech unicorn Airwallex pushes into Latin America with Mexico dealGlobal fintech giant Airwallex said it has acquired MexPago, a rival payments company based out of Mexico, for an undisclosed sum.
• Africa: Visa, Mastercard Want a Slice of Africa's Mobile MoneyGlobal payments firms are spending billions of dollars on fintechs around the continent as e-commerce growth picks up.
• Europe: Stripe embeds A2A payments in checkout with TrueLayerStripe is to provide customers of European merchants with the option to ditch card-based payments in favour of open banking linked transactions through an embedded checkout integration with TrueLayer
• Global: Why U.S. fintechs favor Singapore as a crypto payments hubRipple, Coinbase and Circle all received licenses to operate under the nation's stablecoin regulations, which offer more clarity than American rules do.
• LatAm: Nubank's Mexico arm seeks banking license to grow product portfolioBrazilian fintech Nubank's Mexico arm has requested a banking license from local regulators, the unit's top executive said on Thursday, describing it as a bid to broaden product offering.
• USA: Credit Cards: Americans Do Leave Home Without ThemI’ll be sad to see cards disappear. Right now the focus is on digital wallets and smartphones, but this may well be another interim before we move to biometrics
• Global: Will Binance come over to the light side?With FTX crushed, CZ must decide whether to go along with regulation

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