Digital Currency Group (DCG) and CEO Barry Silbert Move to Dismiss $3 Billion Lawsuit by New York Attorney General

Venture capital firm Digital Currency Group (DCG) and its CEO Barry Silbert have taken action to dismiss a $3 billion lawsuit filed by the New York Attorney General’s Office (NYAG), arguing that the fraud allegations lack merit.

The lawsuit, filed in October 2023, targeted crypto firms Gemini, Genesis, and DCG, alleging fraud in connection with the Gemini Earn investment program. The NYAG claims that approximately 230,000 investors, including 29,000 New Yorkers, were defrauded by the companies through misleading information about the investment program.

In February 2024, DCG subsidiary Genesis settled with the NYAG, but the NYAG subsequently filed an expanded complaint against DCG and included Genesis as a defendant. In response, DCG filed an objection to the settlement reached by Genesis and the NYAG.

On March 6, DCG and Silbert issued a statement denying the allegations from the NYAG and filed motions to dismiss the lawsuit. DCG maintains that it acted in good faith and followed the advice of reputable professionals. The company believes that the facts will demonstrate its innocence if the case proceeds.

Additionally, DCG refuted the NYAG’s claims that it created a liquidity crunch, stating that it invested significant amounts into Genesis following the collapse of Three Arrows Capital (3AC). DCG also highlighted its $1.1 billion promissory note, which it described as a binding obligation endorsed by advisers, accountants, and the firm’s board of directors.

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“We will continue to vigorously fight these claims and we look forward to putting this issue behind us as we focus on the massive growth opportunity in our industry in 2024 and beyond,” DCG concluded.

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