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Gemini has filed a lawsuit against Digital Currency Group ( DCG ) and its chief Barry Silbert for alleged fraud . Gemini had partnered with DCG for its Gemini Earn program, which involved Gemini giving customer deposits to Genesis Global Capital, a DCG subsidiary, to be lent out in order to earn yield. Genesis Global Capital filed for bankruptcy earlier this year, several months after closing withdrawals amid the collapse of FTX and Alameda Research.  The lawsuit specifically alleges that Genesis misrepresented its risk management process by making huge loans to irresponsible counter parties, including Three Arrows Capital (3AC), motivated in part by those counter parties benefiting the Grayscale Bitcoin Trust (GBTC), another DCG subsidiary. The lawsuit details loans to 3AC totaling $2.3 billion and suggests that the collateral for this trade was valued at less than 50% of the loan total. A portion of this collateral was actually shares of GBTC. 3AC’s trading strategy during...

The suit is led by Edwin Garrison and was filed against "FTX influencers," primarily on the YouTube platform. A class - action suit led by Edwin Garrison has been filed against “ FTX influencers ,” mostly on YouTuber, seeking $1 billion because they “promoted FTX crypto fraud without disclosing compensation.” The suit was filed March 15 in the Southern District of Florida Miami Division. Kevin Paffrath, Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, Tom Nash, Ben Armstrong, Erika Kullberg and Creators Agency LLC were named as respondents. The Moskowitz Law Firm is representing the plaintiffs. The suit is a consolidation of several class action s suits, according to the Law firm. Garrison’s suit was filed on November 15, 2022, “and is the first-filed FTX-related class action filed in the country,” the firm said.   Source: https://thebittimes.com/ftx-influencers-face-1-billion-class-action-lawsuit-over-alleged-crypto-fraud-promotion-tbt...