Timeline: Attorney General says Barry Silbert lied about risky Gemini Earn
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...