In a shocking development, the New York Attorney General’s Office filed charges against cryptocurrency firms Gemini and Genesis Global, along with Genesis’ parent company, Digital Currency Group.
The indictment concerns an investment program known as Gemini Earn, in which Gemini partnered with Genesis and promoted it as a low-risk option despite internal knowledge of the risks associated with Genesis accounts related to the failed FTX platform.
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Prosecutor Letitia James claimed Gemini “hid the risks of investing with Genesis, and Genesis misled the public about its losses.” These acts are considered fraudulent and an example of how “bad actors” can harm the public in a cryptocurrency industry that lacks proper regulation.
After an exhaustive investigation, it has been determined that the accused companies caused losses of more than $1 billion, affecting approximately 230,000 investors. Among the victims are two elderly investors, aged 73 and 56, who invested all their savings in the program and have suffered devastating losses.
The lawsuit, filed in civil court, includes executives from Genesis and its parent company. The Prosecutor’s Office seeks the restitution of the funds to the investors and the prohibition of these companies from operating in the financial sector of the state of New York.
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Gemini, known in the world of cryptocurrencies, is run by twins Cameron and Tyler Winklevoss, who became famous for their dispute with Mark Zuckerberg over the original idea of Facebook and for being the first to amass a billion-dollar fortune thanks to cryptocurrencies.
Genesis, on the other hand, faced difficulties following the bankruptcy of FTX, and announced the search for a $1 billion investment, while also suspending withdrawals from the Gemini Earn program.
The Winklevoss brothers issued a statement through their company in which they declared themselves victims of fraud by Genesis and its parent company, and expressed their determination to defend themselves against the accusations.
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*This content was rewritten with the assistance of artificial intelligence, based on information published by EFE, and was reviewed by the journalist and an editor.
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