Letitia James, the attorney general of New York, is requesting $3 billion in damages in her lawsuit against the crypto companies Gemini Trust and Digital Currency Group (DCG).
This rise from the initial $1.1 billion is intended to assist more investors who fell for Gemini Earn’s deceptive claims.
James claimed that when the lawsuit was filed in October, Gemini, DCG, and their executives had deceived investors by making false claims about how simple it would be to receive their money back from Gemini Earn and about the strength of Genesis Capital.
She is now requesting $3 billion because there are now 230,000 injured investors. James feels that since there have been so many injuries, “We really need stronger rules for cryptocurrencies.” She is in favor of giving investors in the volatile cryptocurrency market greater protection.
Genesis recently prevailed in a legal dispute with Gemini regarding ownership of certain valuable shares, and it is currently handling its financial difficulties in addition to this legal battle.
Genesis sued Gemini in an attempt to recoup more than half a billion dollars, following James’ initial lawsuit. It is said that before Genesis’ financial difficulties, Gemini made excessive withdrawals.
Gemini has until February 21 to respond. The legal battle is crucial to the crypto community. It demonstrates the dangers of investing in virtual currencies and the need for just and transparent regulations.
According to experts, striking a healthy balance is necessary: “Rules are important for keeping people safe, but they shouldn’t stop new ideas from growing.”
The outcome of a legal meeting on March 4 is being watched closely by all parties, as it has the potential to alter the regulation of digital currencies and ensure investor safety.
The future of digital money greatly depends on James’s battle for justice and unambiguous regulations. It could result in new regulations and investor protection guidelines for crypto.