New York Attorney General Letitia James has expanded her lawsuit against Digital Currency Group (DCG) for allegedly defrauding investors in its relationship with Genesis and Gemini Earn. The amended filing accuses both firms, DCG CEO Barry Silbert, and ex-Genesis CEO Soichiro Moro of defrauding additional individuals and institutions of an additional $2 billion, bringing the total to $3 billion.

The lawsuit, initially filed in October, charged Gemini, DCG, and Genesis for misleading investors about the risks associated with the Gemini Earn platform, which promised a 'low-risk' yield for crypto deposits. Genesis, which managed Gemini Earn customers' deposits, went bankrupt last year, resulting in the loss of customers' funds.

Attorney General James has a history of cracking down on the crypto industry, directing Bitfinex and Tether to end all trading activity in New York and ordering unregistered crypto-lending platforms to cease illegal operations within the state. The expanded lawsuit against DCG highlights the need for stronger cryptocurrency regulations to protect investors.