New York Attorney General Letitia James has launched a lawsuit against major cryptocurrency players, including Gemini Trust, Genesis Global Capital, and Digital Currency Group (DCG).
The lawsuit is centered around the Gemini Earn platform, a collaboration between Genesis and Gemini, which allegedly offered deceptive returns to cryptocurrency investors. The legal action asserts that internal risk assessments at Gemini were not disclosed to investors, with particular concern about the substantial involvement of Alameda Research.
Additionally, the lawsuit claims that Gemini did not make public a change in Genesis’s credit rating. Letitia James has been proactive in regulating the cryptocurrency industry and previously targeted Tether and Bitfinex.
This lawsuit follows the SEC’s action against Genesis and Gemini and introduces more complexity to the crypto giants’ operations. The lawsuit seeks restitution for investors and aims to prevent these companies from engaging in securities and commodities activities in New York.
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