Genesis Files Lawsuits Against DCG and Barry Silbert for $3.1 Billion

Genesis Global Capital has initiated two lawsuits against its parent company, Digital Currency Group (DCG), and CEO Barry Silbert, seeking to recover over $3 billion.

The lawsuits include a claim for a $1.1 billion promissory note and over $1.2 billion in improper transfers.
Genesis alleges that DCG transferred significant crypto and fiat assets from Genesis while it was insolvent, affecting over 100,000 creditors.
DCG is accused of issuing a fake 10-year promissory note to mask financial issues stemming from the collapse of Three Arrows Capital in June 2022.
Genesis asserts that DCG misled investors about its financial health during the 2022 market downturn to prevent a bank run.
Genesis was reportedly insolvent by December 2021, yet DCG continued operations through the lender until bankruptcy became public in January 2023.
In January, DCG faced a $38 million fine from the SEC for misleading investors.
If successful, Genesis could repay creditors and compensate retail investors, though the lawsuits may take considerable time to resolve.