New York State prosecutors have filed a lawsuit against crypto exchange operator Gemini and DCG's Genesis Global Capital unit, alleging that they defrauded more than 230,000 investors out of a collective $1.1 billion. The lawsuit claims that Gemini and Genesis Global Capital failed to disclose financial risks to those investing in a crypto-lending program and also failed to reveal that nearly 60% of its third-party loans were to Bankman-Fried's crypto trading firm. The Attorney General's Office is seeking restitution and damages for the investors who were allegedly defrauded.
