Digital Currency Group Fights to Dismiss NYAG's $3B Fraud Suit; Denies Allegations as Baseless
Summary:
Digital Currency Group (DCG) and its CEO, Barry Silbert, have sought to dismiss the $3 billion lawsuit by the New York Attorney General's Office (NYAG), defining the fraud allegations as unfounded. The defenses come after NYAG accusations that firms including DCG misled thousands of investors via the Gemini Earn program. DCG has rejected the claims and declared it acted in good faith, asserting that the lawsuit seeks to wrongfully depict the firm's support of Genesis as fraudulent. They also refuted claims of causing a liquidity crunch and pledged to fight the allegations while focusing on future industry growth opportunities.
Digital Currency Group (DCG), a venture capital firm, and its CEO, Barry Silbert, have moved to have a $3 billion legal suit brought against them by the New York Attorney General's Office (NYAG) dismissed, stating the fraud claims have no substance. This follows the suit filed by NYAG in October 2023, alleging that Gemini, Genesis, and DCG deceitfully gained from the Gemini Earn investment scheme, affecting approximately 230,000 investors, of which 29,000 were New York residents.
On February 8, Genesis, a DCG subsidiary, settled with NYAG. Nonetheless, NYAG lodged an amplifying complaint just a day later against DCG and Genesis. In response, DCG objected to the Genesis-NYAG settlement on February 21. On March 6, DCG and Silbert publicly refuted NYAG's allegations and moved to dismiss the lawsuit, categorizing the fraud claims as merely "baseless accusations, flagrant distortions, and unfounded conclusive statements."
DCG maintains that they've done nothing wrong and that the facts will demonstrate this if the trial proceeds. The company insists it operated in good faith, relying on the counsel of highly-reputable professionals. They went further to assert that NYAG was unjustly framing DCG's support of Genesis as fraudulent in a bid to find a sensational scapegoat for losses incurred by others.
The firm refuted NYAG's claims that they precipitated a liquidity shortage, stating that they had invested hundreds of millions into Genesis following Three Arrows Capital's (3AC) financial meltdown. This was on top of a $1.1 billion promissory note, which DCG argued had been scrutinized and approved by advisors, accountants, and the board of directors. DCG concluded by stating its commitment to resolutely defend against these allegations, and it looks forward to putting this behind them and focusing on the immense growth prospects in their industry in 2024 and beyond.
Published At
3/7/2024 11:05:14 AM
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