Digital Currency Group (DCG) files motion to dismiss lawsuit from New York Attorney General
Posted: March 6, 2024 9:46 AM Updated: March 6, 2024 9:47 AM
Digital Currency Group (DCG), the parent company of bankrupt Genesis Global Capital, has filed a motion to dismiss a lawsuit filed against the companies by New York Attorney General Letitia James. Barry Silbert, DCG’s CEO and founder, filed the motion to face charges that he defrauded customers and investors by concealing the company’s losses.
The lawsuit, which began last October and recently expanded, alleges that investors involved in the defunct Gemini Earn product and those who invested directly in DCG subsidiary Genesis were defrauded of $3 billion. This is reportedly due to DCG and others hiding losses incurred during the collapse of cryptocurrency companies such as Three Arrows Capital (3AC) and FTX.
“Today, DCG and Barry Silbert filed a motion to dismiss the meritless civil lawsuit filed by the New York Attorney General against Gemini, Genesis, and DCG. “As we have stated from the beginning, the allegations are a thin web of baseless innuendo, blatant misunderstandings and baseless concluding statements,” DCG said in a blog post.
The lawsuit alleges that the companies were aware of undercollateralized loans and high concentration in FTX’s sister company, Alameda Research. Additionally, DCG and Silbert allege that financial discrepancies were concealed through promissory notes between the parent company and Genesis.
“DCG has invested hundreds of millions of dollars of additional capital in Genesis following the collapse of Three Arrows Capital. “This is in addition to the $1.1 billion promissory note, which is a binding obligation and has been appropriately vetted and approved by DCG’s Board of Directors, accountants and other advisors to whom DCG remains committed,” the company statement added.
Moreover, Genesis proposed a settlement with the New York Attorney General’s Office last month, but DCG opposed it, calling it a “backdoor attempt to circumvent U.S. bankruptcy law.”
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Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.
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Victor is the Managing Technology Editor/Writer at Metaverse Post and covers artificial intelligence, cryptography, data science, metaverse, and cybersecurity within the enterprise space. He boasts of five years of media and AI experience working at renowned media outlets such as VentureBeat, DatatechVibe, and Analytics India Magazine. Having worked as a media mentor at prestigious universities such as Oxford and USC, and holding a Master’s degree in Data Science and Analytics, Victor is committed to keeping up with new trends. He provides readers with the latest and most insightful stories from the world of technology and Web3.