The state of New York filed a lawsuit against DCG, its subsidiary Genesis Global Capital and crypto exchange Gemini alleging fraud to the tune of over $1 billion

Bitcoin was holding a modest gain at $28,600 midday Thursday despite news that might have been expected to send the crypto sharply down.

The state of New York earlier today filed a lawsuit against Digital Currency Group (DCG), its subsidiary Genesis Global Capital and crypto exchange Gemini alleging fraud to the tune of over $1 billion.

Apart from this, interest rates continue their steep increase, with the 10-year U.S. Treasury yield up another 6 bps to 4.97%, threatening to top 5% for the first time since before the global financial crisis. That, in turn, has sent stocks down for a second day in a row.

Bitcoin, nevertheless, remains higher by 1% to $28,600 after earlier in the session having made a brief run to just short of $29,000.

Most large-cap alternative crypto currencies – altcoins – traded flat, with ether, Binance-adjacent token BNB, Polkadot’s DOT, dogecoin marginally lower. Solana defied the trend, climbing 5% during the day.

XRP, a crypto currency related to the Ripple network, rose more than 6% late Thursday as the U.S. Securities and Exchange Commission (SEC) dropped charges against Ripple Labs CEO Brad Garlinghouse and Chairman Chris Larsen. The Securities and Exchange Commission said it will continue to pursue damages against the firm.

Also at work were U.S. Fed Chair Jerome Powell’s remarks at the Economic Club of New York. He said that inflation is still too high but increasing long-term bond yields could mean less requirement for further interest rate hikes. Powell hinted the Fed will likely keep rates unchanged in November but kept the option open for a potential hike in December.