In a recent development, Digital Currency Group (DCG) has sought to have the New York Attorney General's lawsuit dismissed, as detailed in Metaverse Post.
In Brief
Barry Silbert, serving as DCG's CEO, has taken legal action against the claims made by the New York attorney general, which allege he kept losses hidden from clients and investors.
Digital Currency Group (DCG), the parent company of the now-bankrupt Genesis Global Capital, is pushing back against the lawsuit filed by New York Attorney General Letitia James, aiming for its dismissal. Barry Silbert The motion presented by Silbert counters allegations asserting that he repeatedly concealed losses within these entities, which purportedly misled investors and customers alike.
Initiated last October and recently expanded, the lawsuit accuses investors linked to the defunct Gemini Earn platform, alongside those who directly invested in DCG's subsidiary, of suffering a loss of $3 billion due to hidden losses from the collapse of major crypto companies, including Three Arrows Capital. Genesis DCG has remarked, 'Today, Barry Silbert and DCG have submitted motions aimed at dismissing the unfounded civil complaint filed by New York's Attorney General against Gemini, Genesis, and DCG. From day one, we've maintained that these allegations are a flimsy mix of groundless insinuations, misleading assertions, and unsubstantiated claims.' FTX .
The allegations within the lawsuit point to the companies being aware of insecure loans and significant financial ties with Alameda Research, a sister company of FTX. It further claims that financial disparities were concealed through a promissory note exchanged between DCG and Genesis. blog post .
'Following the collapse of Three Arrows Capital, DCG invested hundreds of millions into Genesis, alongside a $1.1 billion promissory note that is a legally binding commitment, thoroughly reviewed and approved by DCG's board, accountants, and advisors,' the company's statement elaborated.
In addition, last month, Genesis suggested a settlement to the New York Attorney General's office, a proposal that DCG opposed, labeling it as an underhanded attempt to bypass U.S. bankruptcy law.
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In line with the Trust Project guidelines Victor serves as the Managing Tech Editor/Writer at Metaverse Post, focusing on topics such as artificial intelligence, cryptocurrency, data science, metaverse developments, and enterprise cybersecurity. With five years under his belt in media and AI, he has contributed to renowned platforms like VentureBeat, DatatechVibe, and Analytics India Magazine. As a Media Mentor at esteemed universities like Oxford and USC, and holding a Master’s in data science and analytics, Victor is dedicated to keeping up with the latest industry trends.
