The Block22 minutes ago

Published on February 09, 2024 16:47 GMT+00:00edited on February 09, 2024 16:49 GMT+00:00

New York Attorney General Letitia James has expanded the state's lawsuit against Digital Currency Group and tripled the estimated size of alleged fraud to more than $3 billion.

After a continued investigation, James said the office became aware that more investors were defrauded, leading to an additional $2 billion in assets that were lost, according to a statement released on Friday. The lawsuit hinges on a crypto lending program called Gemini Earn. 

"While the initial suit focused largely on the losses of retail investors participating in the Gemini Earn investment program, as more complaints have been made, it became clear that the complicated nature of the fraud also swindled other investors who contributed their money directly to DCG’s affiliate Genesis," the NYAG said.