New York Demands 3 Billion Dollars From Digital Currency Group in Extended Legal Battle

Crypto News– New York’s Attorney General has revised its lawsuit against the cryptocurrency giant Digital Currency Group, aiming to recoup $3 billion in restitution for investors who were allegedly defrauded, a significant increase from the initial $1 billion sought.

New York Demands 3 Billion Dollars From Digital Currency Group in Extended Legal Battle

The lawsuit, originally filed in October, targeted Genesis Global Capital, Gemini Trust, and DCG, accusing them of misleading investors and concealing over a billion dollars in losses. The updated complaint, filed recently, asserts that a larger number of investors were victims of deception, prompting the request for an additional $2 billion in restitution.

Attorney General Letitia James emphasized the widespread nature of the fraud, stating, “The fraud and deceit were so expansive that many additional people have come forward to report similar harm.“

In response, DCG dismissed the amended complaint as groundless. A spokesperson stated, “There is nothing new here—this is the same baseless complaint recirculated to generate another round of press headlines.” Asserting their commitment to lawful and ethical business practices, the spokesperson reiterated DCG’s intention to vigorously contest the allegations and expressed confidence in their eventual vindication.

DCG is a significant player in the digital asset space, operating as a conglomerate. Among its various ventures, Genesis was a company under its umbrella, offering users the opportunity to generate cash from their cryptocurrency holdings.

Genesis faced financial collapse last year, having previously supplied funds to Gemini, a prominent crypto exchange, for its Earn program. This program enabled investors to earn cash through their crypto assets.