New York Prosecutors Sue Digital Currency Group and Gemini, Allege $1.1B Fraud Related to Sam Bankman-Fried's Alameda Research

New York state prosecutors sued Digital Currency Group, Gemini, alleging $1.1 billion fraud against 230,000 investors.

Lawsuit cites exposure to bankrupt Sam Bankman-Fried's trading firm Alameda Research as a key misstep.

Prosecutors allege Genesis unit of DCG lied to investors, falsified documents, concealed 3AC default.

Gemini's Earn program gave customers' crypto to Genesis for lending, had significant but undisclosed Alameda exposure.

New York AG seeks to bar firms and executives from securities work, recover losses for investors.