tl;dr
According to a Fortune Magazine report, Digital Currency Group (DCG) has submitted a motion to dismiss a lawsuit from the New York Attorney General, alleging fraud and deceit against DCG, Genesis, and Gemini. DCG's attorneys assert that the claims are baseless and lack substance, maintaining that th...
According to a Fortune Magazine report, Digital Currency Group (DCG) has submitted a motion to dismiss a lawsuit from the New York Attorney General, alleging fraud and deceit against DCG, Genesis, and Gemini. DCG's attorneys assert that the claims are baseless and lack substance, maintaining that the company acted in good faith. Despite a settlement between Genesis and the Attorney General's office, DCG and Genesis are currently involved in a dispute concerning the subsidiary's bankruptcy plans.
The lawsuit, filed in 2023, alleges that DCG and its lending subsidiary Genesis and crypto firm Gemini defrauded over 230,000 investors of more than $1 billion. DCG's CEO, Barry Silbert, is also named a defendant in the lawsuit. The lawsuit accuses DCG of attempting to conceal losses exceeding $1.1 billion from investors and Gemini during the crypto market collapse in 2022. However, DCG’s attorneys argue that the claims made by the attorney general’s office are "baseless" and lack substance. Digital Currency Group’s attorneys describe the allegations as a “thin web of baseless innuendo” and accuse the office of searching for a “headline-worthy scapegoat.”
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