Doing the Same Thing Over and Over Again Expecting Different Results is Called … Cryptocurrency

New York is suing cryptocurrency exchange operators Gemini Trust and Digital Currency Group for defrauding more than a quarter million investors out of more than a billion dollars.

They did this, NY AG Letitia James says, by not disclosing the financial risks to investors in their crypto-lending program which went bankrupt last year.

Gemini was founded by the Winklevoss twins – the folks who claimed that Mark Zuckerberg stole their idea, which is now called Facebook.

Apparently nearly 60 percent of the “loans” went to Sam Bankman-Fried’s crypto trading firm and we know how that turned out.

New York wants to ban Gemini, Genesis and DCG from the financial investment industry and get restitution for investors. Since the money is gone, I am not sure how that last part is going to work.

Last January the SEC charged Gemini and Genesis with offering unregistered securities.

Investors, in many cases investors who did not have either the net worth or sophistication to invest in these super risky investments, wanted to believe that they could get 10x or 50x the return that they could get from other financial instruments and not have risk. While these investors did get scammed by the Winklevoss twins, common sense should have told them that there was something bad afoot.

And still, people do the same thing with crypto over and over and over again, expecting different results. Credit: CBS

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