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Digital Currency Group (DCG) and CEO Barry Silbert move to dismiss $3B lawsuit

TL;DR

  • DCG and CEO Barry Silbert deny fraud allegations in a $3 billion lawsuit from NYAG, claiming baseless accusations.
  • DCG invested heavily in Genesis after Three Arrows Capital collapsed, citing a $1.1 billion binding obligation endorsed by professionals.
  • DCG remains focused on crypto industry growth, determined to overcome legal challenges and move forward.

Digital Currency Group (DCG) and its CEO, Barry Silbert, have taken decisive action to counter allegations made by the New York Attorney General’s Office (NYAG) in a $3 billion lawsuit. The lawsuit, filed in October 2023, accused DCG and crypto firms Gemini and Genesis of defrauding investors, including thousands of New Yorkers, through the Gemini Earn investment program.

DCG’s motion to dismiss and denial of allegations

DCG and Silbert have filed motions to dismiss the lawsuit, arguing that the fraud allegations are baseless. They have vehemently denied the accusations, labeling them as “baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.” DCG firmly believes that they have acted in good faith and followed the advice of reputable professionals.

The company states, “In search of a headline-worthy scapegoat for losses caused by others, the NYAG wrongfully seeks to portray DCG’s good-faith support of Genesis as participating in fraud.” DCG asserts that it has done nothing wrong and is confident that the facts will support its position if the case proceeds.

In refuting the NYAG’s allegations, DCG has also leveled counterclaims against the office, stating that the allegations have created a liquidity crunch. DCG argues that it invested hundreds of millions into Genesis following the collapse of Three Arrows Capital (3AC). Moreover, DCG highlights its $1.1 billion promissory note, describing it as a binding obligation endorsed by advisers, accountants, and the firm’s board of directors.

DCG’s forward-looking approach

Despite the legal challenges, DCG remains focused on the industry’s future. The company is committed to vigorously fighting the claims and looks forward to putting the issue behind them. With optimism, DCG emphasizes its dedication to capitalizing on the massive growth opportunities in the crypto industry in 2024 and beyond.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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