So, right now in New York, where Sam Bankman-Fried, the guy behind FTX, is facing fraud charges, the state attorney general has accused three major crypto firms of deceiving their customers. We’re talking about the Gemini exchange, led by the Winklevoss twins, along with Genesis and its parent company, Digital Currency Group. They’re being hit with claims that they caused around $1.1 billion in losses for a ton of investors.
This is just another layer in the wild FTX saga. Honestly, I doubt Gemini's management wasn’t aware of the circus going on with FTX and Alameda, yet they still decided to invest with them.
I have read the news and I hope that if it is true as it is said in it that the Gemini Earn program:
I hope they get the maximum penalty they can get. In the end, what the Winkelvoss have is greed, because with the amount of Bitcoins they have from the early years, they could have dedicated themselves to other projects that were not based on shitcoins to make money.
The FTX exchange and its leaders have big problems, but it will be very difficult to prove this. This is a business and there are risks in it.
I'm very low on the prospect of such trials, but it will be very interesting to watch because the evidence has not yet been published.
Such a conspiracy is very difficult to prove in court.
The New York attorney general has the role of protecting the interest of these investors, filling this suit against Gemini and Genesis is lawful. Customers were informed that thier investment was safe and secure and nobody told them about the risk their funds were exposed to. I am sure many people wouldn't have invested if they knew how Gemini intends to use the funds to make a profit. It is annoying to see how people's hard-earned money is being mismanagement by greedy people who lack financial intelligence.
An analysis of the operation of Genesis will expose you to careless and uncollateralized lending that led to its financial woes. The worst part of it was that they were concealing the losses from customers. Maybe they wanted to come up with a shitcoin that will be used to pay these greedy clients. I call them greedy people because 8% interest looks suspicious.
Investor protection is good, but it's too late. Investors' money has already been lost because cryptocurrency prices have fallen.
This is a civil lawsuit, and such courts can take a very long time and to understand the situation, the criminal investigation with the FTX exchange must end so that there are already undeniable facts in the civil trial in court.