The size of the alleged fraud scheme has now more than tripled to over $3 billion.

Earlier in October, James filed a lawsuit against DCG, its Genesis Global Capital unit, and Gemini Trust, which is run by twin brothers Cameron and Tyler Winklevoss. The initial lawsuit claimed that these entities had caused losses of over $1 billion by deceiving investors about the Gemini Earn program. The program allowed customers to lend their crypto assets to Genesis in exchange for a substantial rate of return.

As more investors came forward, it became evident that the alleged scam extended further than initially believed. James now asserts that the fraud scheme perpetrated by DCG through Genesis also ensnared investors who directly sent money to Genesis, falsely assured that their funds were secure.

In her expanded lawsuit, James is seeking restitution for more than 230,000 investors who she believes were defrauded, totaling over $3 billion. She emphasized the need for stronger cryptocurrency regulations to protect all investors, calling attention to the horrific financial losses suffered by real people.

Representatives for DCG, Genesis, and Gemini have not yet commented on the matter.

Genesis recently filed for bankruptcy in January 2023, shortly after suspending withdrawals by Gemini Earn customers following the collapse of FTX, a cryptocurrency exchange owned by Sam Bankman-Fried. Both Genesis and Gemini were also sued by the US Securities and Exchange Commission (SEC) for allegedly bypassing disclosure requirements intended to safeguard Gemini Earn customers.

Last week, Genesis reached an agreement with the SEC to pay a $21 million fine, provided it can fully repay customers through the bankruptcy process. In the meantime, Gemini has filed a lawsuit against DCG in relation to the failure of their crypto lending partnership.

Individually known for their connection to the birth of Facebook, the Winklevoss twins garnered mainstream fame when they were portrayed in the film "The Social Network." They had studied at Harvard University alongside Mark Zuckerberg, whom they subsequently sued, claiming he stole their idea for a website called Harvard Connection, which he later renamed Facebook.

While the cryptocurrency fraud case unfolds, Letitia James is eagerly awaiting the outcome of the fraud trial she initiated against Donald Trump and his business empire, the Trump Organization, in New York.