The Securities and Exchange Commission (SEC) has imposed a $3 million fine on an unnamed crypto lender for undisclosed violations. In related news, the Digital Currency Group (DCG) has raised legal concerns over the bankruptcy strategy of its subsidiary, Genesis Global, seeking to reject the proposed plan. Genesis Global, which is currently undergoing bankruptcy proceedings, has settled a lawsuit with New York Attorney General Letitia James. The lawsuit alleged that Genesis Global defrauded customers through its Gemini Earn program, a partnership with Gemini Trust. The New York Attorney General has expanded the civil fraud suit against Gemini Trust and DCG, with claims now seeking $3 billion in restitution for over 230,000 investors. This amount exceeds the current valuation of DCG and its Grayscale Bitcoin Trust, which is experiencing outflows.
Crypto fraud suit tied to Winklevoss twins expanded to $3B by NY AG Letitia James https://t.co/4ZjfJrATfv https://t.co/I4FrMpnx68
DCG, Genesis, Gemini Earn: The NYAG is expanding the set of claims against DCG. The NYAG is seeking more than $3 Bn+ of restitution for the more than 230,000 investors. DCG isn't even worth $3 Bn - and neither is Grayscale now that GBTC has outflows. https://t.co/vpcdPvEy4e https://t.co/oiACVJPTbk https://t.co/iFHWZ5Sst8
Genesis moves to settle lawsuit brought by New York https://t.co/MhqmZk7E0K
The alleged fraud at Gemini Trust and Barry Silbert’s Digital Currency Group was three times bigger than initially thought, the New York attorney general said in revised civil complaint https://t.co/91IesBxx5n
❖ NY CIVIL FRAUD SUIT AGAINST GEMINI, DCG NOW SEEKS $3B
Bankrupt Genesis Global settles NY Attorney General's lawsuit https://t.co/of4MIbj1Dq https://t.co/0cQc4cVTTp
Another settlement for bankrupt Genesis, this time related to NYAG suit https://t.co/2X1MW1EZ0x
Bankrupt crypto lender Genesis Global has reached a settlement with New York Attorney General Letitia James over allegations of defrauding customers through its now-defunct Gemini Earn program https://t.co/kCA0I9imOC
Genesis Global has settled a lawsuit brought by New York’s top law enforcement official alleging the bankrupt crypto lender defrauded customers of its now-terminated Gemini Earn program, which was run jointly with Gemini Trust https://t.co/GBCMV6bSNk
Digital Currency Group, the parent of Genesis Global, says it would be shortchanged under the crypto lender’s bankruptcy plan https://t.co/ODv71PmCnX
#Crypto Firm DCG Raises Legal Concerns Over Genesis' Bankruptcy Strategy, Seeks Plan Rejection https://t.co/JueHGSnwL5
SEC Cracks Down on Another Crypto Lender With $3 Million In Fines ► https://t.co/7s6GzOTNMw https://t.co/7s6GzOTNMw