New York Attorney General Expands Crypto Lawsuit to Over $3 Billion
The crypto landscape is facing increased scrutiny as New York Attorney General Letitia James has escalated the state’s legal action against Digital Currency Group (DCG). This expansion significantly increases the scope of the legal battle, impacting thousands of investors and sending ripples through the cryptocurrency industry.
New York Attorney General Letitia James on Friday expanded its lawsuit against crypto-focused VC firm Digital Currency Holdings, increasing the size of the alleged fraud to a staggering amount. The lawsuit, filed in the New York Supreme Court, now seeks to address allegations of fraudulent activities impacting a vast number of individuals.
In October 2025, Attorney General James filed a sweeping lawsuit against cryptocurrency companies Gemini, Genesis, and DCG for defrauding investors. The initial lawsuit focused on specific instances of alleged wrongdoing, but this expansion reflects the continued investigation and discovery of potentially wider-reaching fraudulent schemes.
According to the attorney general, up to 230,000 people may have lost up to $3 billion, which is what prompted the lawsuit to be expanded. The alleged fraud centers around promises made to investors regarding returns on their cryptocurrency holdings, specifically through programs offered by the involved companies.
New York Attorney General Letitia James has escalated the state’s legal action against Digital Currency Group (DCG), tripling the estimated size of the alleged fraud to over $3 billion. This development underscores the growing concerns surrounding investor protection within the volatile cryptocurrency market. Stay tuned for further updates as this case progresses.
This expanded lawsuit highlights the Attorney General's commitment to holding cryptocurrency companies accountable for their actions and protecting investors from potential financial harm. The outcome of this case could have significant implications for the future regulation and operation of cryptocurrency businesses in New York and beyond.