Digital Currency Group (DCG), a venture capital firm, and its CEO Barry Silbert have submitted motions to dismiss a $3 billion lawsuit brought by the New York Attorney General’s Office (NYAG), arguing that the fraud accusations are unfounded.
In October 2023, the NYAG filed a lawsuit against crypto companies Gemini, Genesis, and DCG, alleging that they defrauded 230,000 investors, including 29,000 New Yorkers, through the Gemini Earn investment program. The NYAG asserts that the firms deceived New York residents and provided false information about the investment program.
On February 8, DCG subsidiary Genesis settled with the NYAG. However, the following day, the NYAG filed an expanded complaint against DCG, including Genesis as one of the defendants. In response, DCG objected to the settlement reached by Genesis and the NYAG on February 21.
On March 6, DCG and Silbert released a statement refuting the NYAG’s allegations. Additionally, they filed motions to dismiss the lawsuit, referring to the accusations as “baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.”
DCG firmly believes that the facts will demonstrate the company’s innocence if the case proceeds. Furthermore, DCG stated that it acted with good intentions, relying on the advice of reputable professionals. The firm also addressed the NYAG’s allegations of creating a liquidity shortage, asserting that it invested hundreds of millions into Genesis following the collapse of Three Arrows Capital (3AC). DCG emphasized that this investment was in addition to a $1.1 billion promissory note, which it described as a binding obligation validated and endorsed by advisors, accountants, and the board of directors.
“We will vigorously challenge these claims and eagerly anticipate resolving this matter so that we can concentrate on the immense growth opportunities in our industry in 2024 and beyond,” added DCG.
Magazine: Ether staking surpasses $85 billion, US banks competing for a share of BTC custody, and more: Hodler’s Digest