Gizmodo: Winklevoss Owned Gemini Faces $1 Billion Cryptocurrency Fraud Lawsuit by New York AG

The New York Attorney General Files Lawsuit Against Gemini, Owned by Winklevoss Twins, Alleging $1 Billion Cryptocurrency Fraud

The New York Attorney General has recently filed a lawsuit against Gemini, a cryptocurrency exchange owned by the Winklevoss twins, accusing them of engaging in a fraudulent scheme worth $1 billion. The lawsuit alleges that Gemini engaged in various deceptive practices, including false advertising and failure to disclose important information to its customers.

According to the lawsuit, Gemini falsely claimed that it was the “most regulated” cryptocurrency exchange in the world, when in reality, it had not obtained necessary licenses to operate in New York. The Attorney General also accuses Gemini of manipulating the market for its own benefit and failing to protect its customers from fraud and abuse.

The lawsuit further claims that Gemini failed to implement adequate measures to prevent money laundering and other illegal activities on its platform. It alleges that the exchange allowed users to trade cryptocurrencies without proper identity verification, enabling criminals to exploit the platform for illicit purposes.

The Attorney General is seeking a court order to shut down Gemini’s operations in New York and is also seeking restitution for affected customers, as well as penalties and disgorgement of ill-gotten gains. The lawsuit serves as a warning to other cryptocurrency exchanges that they must comply with regulations and protect their customers from fraudulent activities.

Gemini has responded to the lawsuit, stating that it is “deeply disappointed” in the Attorney General’s actions and that it will vigorously defend itself against these allegations. The exchange claims that it has always prioritized compliance and has taken extensive measures to ensure the safety and security of its platform.

This lawsuit comes at a time when regulators around the world are increasing their scrutiny of the cryptocurrency industry. As cryptocurrencies continue to gain popularity, it is crucial for exchanges to operate transparently and responsibly to maintain trust among their users and regulators.

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