Carding 4 Carders
Professional
The New York State Prosecutor's Office has filed a lawsuit against Gemini, Genesis, Digital Currency Group (DCG) and the company's management on charges of defrauding more than 230,000 investors worth more than $1 billion.
According to the investigation, Gemini lied to users about the Earn staking program, which it implemented together with Genesis. The Winklevoss brothers ' company has repeatedly assured investors that the product is low-risk.
Gemini transferred the funds raised under Earn to Genesis, which used them to issue loans to Three Arrows Capital and Alameda Research.
Gemini knew that Genesis loans were insufficiently secured, and the lender's financial performance was unsatisfactory, but it hid this from investors, according to law enforcement officers.
Genesis, its former chief executive, Shichiro Moro, the parent company of DCG, and its CEO, Barry Silbert, are accused of fraudulently concealing more than $1.1 billion in losses incurred by investors.
The crypto lending platform lost most of this amount due to the bankruptcy of Three Arrows Capital in June 2022. As a result of problems with another client — Babel Finance — Genesis lost another $100 million.
According to the investigation, the company did not conduct a proper audit of the borrowers ' financial condition. In addition, the platform misled Gemini about regular monitoring of loan collateral. In fact, for example, the firm has not received reports from Three Arrows Capital for more than two years.
The management of DCG structures colluded, tried to hide the losses incurred from the Winklevoss company, Earn investors and the community. The parent company agreed to issue Genesis a $1.1 billion promissory note with a ten-year maturity at an annual rate of 1%. The debt obligations were part of a fraud scheme, the prosecutor's office said.
Genesis after the liquidation of Three Arrows Capital repeatedly provided Gemini with false statements on the financial balance, including the amount of the promissory note in its current assets. This was a deliberate lie, since this category includes funds that can be converted into money and their equivalents within a year, the law enforcement officers stressed.
The prosecutor's office asked the court to prohibit the defendants from engaging in any business related to securities trading in the state, oblige them to compensate investors for losses and return illegally obtained income.
"New Yorkers and investors across the country lost more than $1 billion because they were indoctrinated with the blatant lie that their investments in Earn are safe and will grow. Instead, Gemini concealed the risks of investing in Genesis, and the latter lied about its losses, " said state Attorney General Letitia James.
According to the investigation, Gemini lied to users about the Earn staking program, which it implemented together with Genesis. The Winklevoss brothers ' company has repeatedly assured investors that the product is low-risk.
Gemini transferred the funds raised under Earn to Genesis, which used them to issue loans to Three Arrows Capital and Alameda Research.
Gemini knew that Genesis loans were insufficiently secured, and the lender's financial performance was unsatisfactory, but it hid this from investors, according to law enforcement officers.
Genesis, its former chief executive, Shichiro Moro, the parent company of DCG, and its CEO, Barry Silbert, are accused of fraudulently concealing more than $1.1 billion in losses incurred by investors.
The crypto lending platform lost most of this amount due to the bankruptcy of Three Arrows Capital in June 2022. As a result of problems with another client — Babel Finance — Genesis lost another $100 million.
According to the investigation, the company did not conduct a proper audit of the borrowers ' financial condition. In addition, the platform misled Gemini about regular monitoring of loan collateral. In fact, for example, the firm has not received reports from Three Arrows Capital for more than two years.
The management of DCG structures colluded, tried to hide the losses incurred from the Winklevoss company, Earn investors and the community. The parent company agreed to issue Genesis a $1.1 billion promissory note with a ten-year maturity at an annual rate of 1%. The debt obligations were part of a fraud scheme, the prosecutor's office said.
Genesis after the liquidation of Three Arrows Capital repeatedly provided Gemini with false statements on the financial balance, including the amount of the promissory note in its current assets. This was a deliberate lie, since this category includes funds that can be converted into money and their equivalents within a year, the law enforcement officers stressed.
The prosecutor's office asked the court to prohibit the defendants from engaging in any business related to securities trading in the state, oblige them to compensate investors for losses and return illegally obtained income.
"New Yorkers and investors across the country lost more than $1 billion because they were indoctrinated with the blatant lie that their investments in Earn are safe and will grow. Instead, Gemini concealed the risks of investing in Genesis, and the latter lied about its losses, " said state Attorney General Letitia James.
