Gemini And Other Crypto Firms Face Charges of Frauds

By Consultants Review Team Friday, 20 October 2023

According to The Messenger, New York Attorney General Letitia James has filed a lawsuit against multiple cryptocurrency organizations, including the Winklevoss twins' cryptocurrency exchange Gemini Trust, Genesis Global Capital, and Digital Currency Group. 

The attorney accused bitcoin corporations of stealing more than $1 billion from investors. In a statement, James stated, "My office will continue our efforts to stop deceptive cryptocurrency companies and push for stronger regulations to protect all investors."

Cameron and Tyler Winklevoss, the Winklevoss Twins, had sued Facebook creator Mark Zuckerberg, a fellow Harvard student, for stealing their idea. They lost the court battle and went on to start Gemini, a cryptocurrency company.

On October 19, James accused Gemini and its affiliates of fraud. According to the lawsuit, these companies duped clients into investing in a programme called Gemini Earn by falsely marketing it as low-risk and high-return. The Gemini Earn programme was managed by Gemini and Genesis, and according to the lawsuit, about 232,000 Gemini Earn investors had their accounts frozen by Gemini and Genesis, with some investors losing their life savings.

Gemini debuted its "Gemini Earn" crypto investing platform in 2021, in collaboration with crypto lender Genesis Capital and parent business Barry Silbert's Digital Currency.

Genesis declared bankruptcy in January with the Winklevoss twins withdrawing around $280 million months before suspecting distress over the fund. Customers were unable to withdraw their funds as deposits were frozen in November 2022.

A 73-year-old grandmother whose account was frozen and had invested $199,000 said, “Are you going to be able to give us our money any time soon? I am crying all day." She added, “Without that money, I am doomed." Lawsuits against other crypto platforms including CoinEx, Coin Cafe, KuCoin, Nexo and Celsius were also filed by The New York AG that failed to register as securities companies and defrauded investors, reported The Messenger.


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