NEW YORK: New York Attorney General Letitia James on Friday expanded her lawsuit against Digital Currency Group and other crypto currency defendants, tripling the size of their alleged fraud scheme to more than $3 billion.

James had in October sued DCG, its Genesis Global Capital unit, and Gemini Trust, the exchange run by twin brothers Cameron and Tyler Winklevoss.

She claimed they caused more than $1bn of losses by misleading investors about the Gemini Earn programme, which let customers lend crypto assets to Genesis in exchange for a high rate of return.

The attorney general said it had become clear as more investors came forward that “the scam perpetrated by DCG through Genesis” also ensnared investors who sent money directly to Genesis and were falsely assured their money was safe.

James is seeking more than $3bn of restitution for the more than 230,000 investors who she believes were defrauded.

“This illegal crypto currency scheme, and the horrific financial losses that real people have suffered, are yet another reminder of why stronger crypto currency regulations are needed to protect all investors,” James said in a statement. Representatives for DCG,

Genesis and Gemini did not immediately respond to requests for comment.

Published in Dawn, February 10th, 2024