Gemini Trust and DCG Allegedly Involved in Scam, Bad News forIndustry Crypto

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Bittime -  New York Attorney General Letitia James has filed lawsuits against several large crypto companies, including Gemini Trust and Digital Currency Group (DCG).

It is related to charges of defrauding investors and violating state law. James is demanding compensation of 3 billion US dollars or around Rp. 203 trillion, as well as the cessation of operations and dissolution of these companies.

Gemini Trust and DCG Allegedly Involved in a Ponzi Scheme (Scam)

According to a lawsuit filed on February 15, 2024 in New York Supreme Court, Gemini Trust and DCG allegedly engaged in a Ponzi scheme involving the sale of a fake crypto token called BitCash.

BitCash claims to be a stable, secure and decentralized digital currency, backed by real assets such as gold, silver and oil.

However, according to James, BitCash is actually a crypto token that has no value, is not backed by any assets, and is not listed on any exchange.

BitCash is only sold through an online platform owned and operated by Gemini Trust and DCG, called BitCash Exchange. These platforms offer investors unrealistic returns, as well as bonuses and incentives to recruit new investors.

James said that Gemini Trust and DCG had defrauded more than 100,000 investors worldwide, who had invested more than 2 billion US dollars in BitCash.

James also said that Gemini Trust and DCG had used investor funds to finance the luxurious lifestyles of their executives, as well as to purchase other crypto assets, such as Bitcoin, Ethereum , and Ripple.

Also Read: Understanding Central Bank Digital Money (CBDC) Privacy Issues

Gemini Trust and DCG Deny Allegations

Gemini Trust and DCG, which are two of the largest and most popular crypto companies in the world, have denied the allegations raised by James.

They claim that BitCash is a legitimate and innovative crypto product, which has received approval from federal and state regulators. 

They also claim that they have provided accurate and transparent information to investors, as well as provided adequate protection and services.

Gemini Trust is a crypto company based in Stamford, Connecticut, founded in 2015 by Cameron and Tyler Winklevoss, known as the founders of Facebook.

Gemini Trust offers a secure and regulated crypto platform, which allows investors to buy, sell, store and exchange more than 70 crypto coins, including Bitcoin. 

Gemini Trust is also the first crypto company in the world to obtain SOC 1 Type 2 and SOC 2 Type 2 certificates, indicating high standards of security and compliance.

Meanwhile, DCG is a venture capital company focused on the crypto industry, which was founded in 2015 by Barry Silbert, former CEO of SecondMarket. DCG has more than 160 crypto companies in its portfolio, including Coinbase, Kraken, Circle, Chainalysis, and CoinDesk. 

DCG also has several subsidiaries, such as Foundry, Genesis, Grayscale Investments, and Luno, which offer various crypto products and services, such as mining, lending, investing, and exchanges.

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This Lawsuit Has the Potential to Rock the Crypto Industry

The lawsuit filed by James has the potential to shake up the crypto industry, which has experienced rapid growth in recent years. The lawsuit also raises questions about the credibility and reliability of crypto companies, which often operate outside the bounds of law and regulation. 

This lawsuit also shows that crypto investors should be careful and do their research before deciding to invest in any crypto product.

James said that this lawsuit is part of his efforts to protect New York investors and consumers from unfair and misleading practices by crypto companies. 

James also said that he will continue to monitor and crack down on crypto companies that violate state laws. It will also work with other federal and state regulators to create a conducive environment for the crypto industry.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements  of Bitcoin (BTC) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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What Are Cryptocurrencies?

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What Is a Dildo in Cryptocurrency

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.