Digital Currency Group (DCG), a venture capital firm, along with its CEO Barry Silbert, has submitted motions to dismiss a $3 billion lawsuit filed by the New York Attorney General’s Office (NYAG). DCG and Silbert argue that the fraud accusations are unfounded.
In October 2023, the NYAG initiated legal action against crypto companies Gemini, Genesis, and DCG, alleging that they deceived 230,000 investors, including 29,000 individuals from New York, through the Gemini Earn investment program. The NYAG claims that these companies defrauded New York citizens and provided false information about the investment program.
On February 8, Genesis, a subsidiary of DCG, settled with the NYAG. However, the very next day, the NYAG filed an expanded complaint against DCG, including Genesis as one of the defendants. In response, DCG opposed the settlement reached by Genesis and the NYAG on February 21.
On March 6, DCG and Silbert issued a statement refuting the NYAG’s allegations. Additionally, they filed motions to dismiss the lawsuit, describing the accusations as “baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.”
DCG firmly believes that the evidence will demonstrate that the company is innocent if the case proceeds. Furthermore, DCG claims that it acted in good faith, following the advice of reputable professionals. DCG stated:
“We also reject the NYAG’s claims that our actions created a liquidity crisis. We invested hundreds of millions into Genesis after the collapse of Three Arrows Capital (3AC). Additionally, we entered into a binding obligation of $1.1 billion, which was thoroughly reviewed and endorsed by advisors, accountants, and our board of directors.”
DCG intends to vigorously defend against these allegations and is eager to move past this issue and focus on the substantial growth opportunities in the industry for 2024 and beyond.
(Source: DCG on X)
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