Analysis Today TheBitTimes.com

The New York Attorney General (NYAG) has filed a lawsuit against Digital Currency Group (DCG) and its CEO Barry Silbert, Genesis and its ex-CEO Michael Moro, and Gemini. The lawsuit alleges that these three companies defrauded 230,000 investors, including about 29,000 New York residents, out of more than $1 billion. According to the complaint, Silbert and the other defendants lied and schemed to defraud Gemini Earn stakeholders, especially regarding the financial condition of its primary partner, Genesis. The NYAG alleges that Gemini misled investors about Gemini Earn, an investment program operated in collaboration with DCG subsidiary Genesis Global Capital. Gemini promoted Gemini Earn as a low-risk investment yielding ultra-high interest rates. Unfortunately, despite these claims, Gemini Earn failed, losing over $1 billion of its customers’ money. Genesis is also bankrupt.  At one point, Sam Bankman-Fried’s Alameda was the borrower for nearly 60% of all outstanding loans fr...

Genesis, the crypto lender that filed for bankruptcy in January and fired over 30% of its staff, aims to recover $620 million from DCG. The companies involved claim discussions for a potential deal to end the dispute are open. advertisement Also Read: Bitcoin Sees Weekly Inflows With Overall Trading Volumes 90% Above YTD Average Why Did Genesis Sue DCG? Genesis recently unveiled a debt repayment plan that the majority of the key creditors rejected despite the few in support. In an attempt to uphold the repayment commitments to the lenders, Genesis took the measure to file lawsuits against DCG. In the Lawsuit , Genesis claims that the loans it provided DCG remain unpaid despite maturing in May. The outstanding loan amount stands at $500 million from DCG and about 4,550 Bitcoin from DCG I. Genesis also filed to take back the accrued interest and late fees apart from the principal amount. Considering the current Bitcoin Price, 4,550 BTC amounts up to approx...