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New York sues crypto firms for alleged $1 billion fraud, cites SBF hedge fund bet
Crypto firms Digital Currency Group and Gemini defrauded more than 230,000 investors out of a collective $1.1 billion, New York state prosecutors said in a lawsuit filed in Manhattan Thursday. They cited a series of missteps, including failure to adequately manage the risk associated with exposure to Sam Bankman-Fried’s bankrupt and allegedly fraudulent crypto trading firm. To perpetrate the alleged fraud, Digital Currency Group and its subsidiaries and affiliates, including Genesis Global Capital and Genesis, lied to investors, created false financial documents and withheld information from creditors, prosecutors ... (full story)