Cryptocurrency scams: Companies sued for 3 billion USD

New York Attorney General Expands $1 Billion Lawsuit Against Three Cryptocurrency Companies

Letitia James, the Attorney General of New York, has taken bold steps in the fight against fraud in the cryptocurrency industry. The latest reports suggest an expansion of a $1 billion lawsuit against Digital Currency Group (DCG), Genesis Global Capital, and Gemini Trust. This historical sum is said to reflect the extent of the fraud committed by these entities.

Fraud Three Times Larger Than Estimated

According to findings, the fraud that took place within the Gemini Earn investment program turned out to be three times larger than previously thought. The staggering value of $3 billion is causing a sensation, and it has been discovered that more investors fell victim to this scheme than initially believed.

The Perils of Fraud in the Cryptocurrency World

Unfortunately, the world of cryptocurrencies remains vulnerable to various types of fraud, as evidenced by over 230,000 defrauded investors in this case. While the sector is starting to stabilize after last year’s scandals, further actions are necessary in terms of regulating and supervising entities operating in this industry.

Technical Issues in the Cryptocurrency Industry

A recent investigation has also revealed technical vulnerabilities in some cryptocurrency systems. For example, the Solana blockchain, though considered a promising technology in the world of cryptocurrencies, experienced a five-hour outage. This marks the eleventh instance of this specific blockchain failing in just two years.

Support for Safe and Honest Cryptocurrency Development

Examining the latest events in the world of cryptocurrencies, it is clear that actions need to be taken not only to combat fraud but also to address the security and technical stability of these systems. Failing to do so risks further losses, a lack of investor trust, and significant confusion among users.

Author: Jan Kowalski