New York Wants $3 Billion From Digital Currency Group in Expanded Lawsuit

New York’s Attorney General has updated its lawsuit against cryptocurrency behemoth Digital Currency Group as it is now trying to get back $3 billion in restitution for defrauded investors instead of $1 billion.

Back in October, the New York Attorney General’s office sued Genesis Global Capital, Gemini Trust, and DCG, alleging that the crypto companies “lied to investors and tried to hide more than a billion dollars in losses.”

At the time, the lawsuit said it would seek $1 billion in restitution. But an amended lawsuit filed today alleges that many more investors were conned—and it is seeking $2 billion extra as a result.

“The fraud and deceit were so expansive that many additional people have come forward to report similar harm,” Attorney General Letitia James said in the amended complaint.

For its part, DCG told Decrypt that the updated complaint is meaningless.

“There is nothing new here—this is the same baseless complaint recirculated to generate another round of press headlines,” a DCG spokesman said. “We will fight the claims aggressively and we will win. DCG has always conducted its business lawfully and with integrity, and DCG and Barry Silbert will be fully vindicated.”

“This illegal cryptocurrency scheme, and the horrific financial losses that real people have suffered, are yet another reminder of why stronger cryptocurrency regulations are needed to protect all investors,” she added.

James’ office said in a statement that the companies defrauded more than 230,000 investors out of more than $3 billion.

DCG is a massive digital asset conglomerate. Genesis is one of many companies run by it, which allows users to earn cash on their crypto holdings.

Genesis went bust last year but used to provide funds to Gemini, a crypto exchange, for its Earn program.

Investors used the Earn program to earn cash on their crypto.

The lawsuit originally alleged that Gemini lied to investors about investing via Genesis. But the updated lawsuit says that it has since become clear that “the complicated nature of the fraud also swindled other investors who contributed their money directly to DCG’s affiliate Genesis.”

This article was updated to include a comment from DCG. Edited by Ryan Ozawa.