Genesis Initiates Lawsuits Against DCG Seeking $3.2 Billion in Damages
Genesis and its subsidiaries have filed two lawsuits against parent company Digital Currency Group (DCG), CEO Barry Silbert, and other executives, alleging fraudulent transfers of billions in crypto.
- Genesis seeks $3.2 billion in total: $2.2 billion in the Delaware Court of Chancery and over $1 billion in the Bankruptcy Court for the Southern District of New York.
- The New York lawsuit claims that funds were withdrawn from Genesis to repay DCG and insiders while the company was insolvent.
- Allegations state that executives exploited their relationship with Genesis, withdrawing assets while public investors remained uninformed.
- Genesis suspended withdrawals in November 2022 and subsequently filed for bankruptcy.
- Creditors are owed $2.2 billion in crypto assets, including bitcoin BTC and ether ETH.
- Genesis is also seeking a trust over any assets taken by the defendants during their management tenure.
A spokesperson for DCG described the lawsuits as baseless and an attempt by sophisticated investors to extract value from DCG.