New York sues crypto firms for losing over $1 billion
New York sues crypto firms for losing over $1 billion
Gemini, Genesis, and DCG are facing some legal trouble.
Specifically, it’s not just for losing money, but for lying to investors about the level of risk in those investments. The lawsuit claims the companies knew the investments were risky and led investors to believe they were safe.
74I feel the onus is slightly on the customer here because pretty much everyone knows that crypto is extremely unstable, and if you didn't know that, but just threw money at it because people told you, that's your fault.
7Yeah but we cant just let massive cons like this go. Plus did anyone who really knew how cry & nft work put their money in it.
40Last November, Gemini paused withdrawals from its Earn program in the wake of the FTX collapse, preventing customers from accessing their funds. The New York Post reported in September that the Winklevoss twins allegedly withdrew $280 million from Genesis before the firm ultimately collapsed.
Additionally, James is suing Genesis and its DCG parent company for allegedly trying to cover up over $1 billion in losses.
That’s a bit more than “buyer beware.”
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Maybe don't invest in pyramid schemes?
21Ok where do I invest my money then? Its very difficult for the working class to put their money anywhere safe and have it earn anything. The market drove people to those risks before some rich people figured out that getting into crypto exchanges would help them profit off of that risk taking financial decision.
2Ok where do I invest my money then?
Well-diversified mutual funds, or something equivalent to that, and in particular you want a mixture of asset classes such as stocks and bonds. You also want to have a hierarchy of investments, ranging from very low-risk but also low-growth investments for your emergency savings that you can tap at a moment's notice to high-risk but also high-growth investments for savings that you do not need to tap for a long time (such as for retirement, assuming that is far off). "High-risk" in this context doesn't mean "risk of your investment disappearing" so much as "risk of your investment suffering from a dip in value at the time when you need it".
But to reiterate: the most important thing here is diversification, because diversification means that some of your investments can drop in value by a lot or even become worthless without causing you to lose everything. Putting all of your money into a single asset or kind of asset, such as a cryptocurrency, is basically the opposite of what you want to be doing.
10Don't, all you're doing is making the world a worse place, at least if you're looking for a multi % return.
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Every day New Yorkers and Americans lost millions, including their entire lifesavings.
Look, I hope these people get their money back cause this sounds messed up, but maybe also don't invest money that you can't afford to lose. ESPECIALLY when it comes to crypto.
21New York was gambling with tax dollars and we're supposed to consider them the victim?
20Its always stories like this that come to mind anytime someone excuses wealth with, "they deserve it because they took the risk". Whenever that risk doesnt go their way, the government bails them out.
16Until you realise that Crypo is just a scam.
Many people are denying it, many does not believe it, many does not understand it.
But the only thing that matter is the fact that more people have lost money than they put in.
5Blockchain dev here. This is false. Blockchain ledgers are in many ways more real than fiat.
Blockchain tends to attract very shitty people, however. Loaning money that doesent exist is a fiat problem. In fact, its the point of fiat.
-1Your brain is short AF.
You are working for the money scammers so it makes 100% sense to you because they lured you in another scheme of understanding.
2
Lol at the morons comparing crypto to the stock market. The more crackdown there is on the scam that is crypto the better.
4This is the best summary I could come up with:
New York Attorney General Letitia James is suing three cryptocurrency companies — Gemini, Genesis, and Digital Currency Group (DCG) — over claims they misled investors, leading to the loss of over $1 billion.
The firm marketed Gemini Earn as a high-yield program that involved customers investing with Genesis Global Capital, which is owned by DCG.
Last November, Gemini paused withdrawals from its Earn program in the wake of the FTX collapse, preventing customers from accessing their funds.
The New York Post reported in September that the Winklevoss twins allegedly withdrew $280 million from Genesis before the firm ultimately collapsed.
Additionally, James is suing Genesis and its DCG parent company for allegedly trying to cover up over $1 billion in losses.
“Hardworking New Yorkers and investors around the country lost more than a billion dollars because they were fed blatant lies that their money would be safe and grow if they invested it in Gemini Earn.”
The original article contains 327 words, the summary contains 155 words. Saved 53%. I'm a bot and I'm open source!
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