Crypto Market Faces Turmoil as NYAG Sues Gemini, Genesis, and DCG
The crypto market is facing a new challenge as New York Attorney General (NYAG) Letitia James has filed a lawsuit against three prominent crypto companies: Gemini Trust Company (Gemini), Genesis Global Capital, LLC and its affiliates (Genesis), and Digital Currency Group, Inc. (DCG). The lawsuit accuses them of defrauding more than 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion.
According to the NYAG, Gemini lied to investors about an investment program it ran with Genesis called Gemini Earn. Gemini allegedly assured investors that investing with Genesis through Gemini Earn was a low-risk investment. However, the NYAG claims that Gemini knew that Genesis’ loans were undersecured and highly concentrated with one entity, Sam Bankman-Fried’s Alameda Research, but did not reveal this information to investors.
The lawsuit also charges Genesis, its former CEO Soichiro Moro, its parent company DCG, and DCG’s CEO Barry Silbert with defrauding investors and the public by trying to conceal more than $1.1 billion in losses, which were borne by investors. The NYAG alleges that Genesis and DCG used deceptive accounting practices and false statements to hide their losses and mislead regulators and auditors.
The NYAG seeks to ban Gemini, Genesis, and DCG from the financial investment industry in New York and seeks restitution for investors and disgorgement of ill-gotten gains. The NYAG stated that “this fraud is yet another example of bad actors causing harm throughout the under-regulated cryptocurrency industry” and vowed to “continue our efforts to stop deceptive cryptocurrency companies and push for stronger regulations to protect all investors.”
The news of the lawsuit has sent shockwaves through the crypto market, as Gemini, Genesis, and DCG are among the most influential and reputable players in the industry. Gemini is one of the largest and most regulated crypto exchanges in the US, founded by the Winklevoss twins. Genesis is one of the leading providers of crypto lending, borrowing, trading, and custody services. DCG is one of the largest investors in crypto startups and projects, owning stakes in Coinbase, Grayscale Investments, BitGo, Blockstream, Circle, Kraken, Ledger, and many others.
The lawsuit could have significant implications for the crypto market, as it could affect the liquidity, reputation, and innovation of the industry. It could also trigger more regulatory scrutiny and legal action from other authorities and jurisdictions. The crypto market is already facing uncertainty due to the pending approval of a Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), which could boost or dampen market sentiment depending on the outcome.
Bitcoin Price Today
Bitcoin price today is $28,348.19 USD, with a 24-hour trading volume of $553.57 billion USD. Bitcoin is up 0.19% in the last 24 hours. The current CoinMarketCap ranking is #1, with a market cap of $553.57 billion USD. Bitcoin has a circulating supply of 19.52 million BTC coins.
The global crypto market cap is $1.09 trillion USD, a 0.56% decrease over the last day. The total crypto market volume over the last 24 hours is $37.38 billion USD, which makes up 6.75% of the total volume. The total volume in DeFi is currently $2.77 billion USD, which is 7.41% of the total crypto market 24-hour volume.
Top 3 Crypto Gainers And Losers Today
| Rank | Name | Price | Change (24h) |
|---|---|---|---|
| #1 | WAX | $0.06166979 USD | +19.02% |
| #2 | Bitcoin SV | $38.41 USD | +14.17% |
| #3 | MultiversX | $25.20 USD | +4.13% |
| #100 | Loom Network | $0.3308 USD | -19.53% |
| #99 | Trust Wallet Token | $1.06 USD | -3.13% |
| #98 | Rocket Pool | $19.30 USD | -2.66% |