Digital Currency Group (DCG), a venture capital firm, and its CEO Barry Silbert have submitted motions to dismiss a $3 billion lawsuit brought against them by the New York Attorney General’s Office (NYAG). DCG and Silbert argue that the fraud allegations made against them are unfounded.
In October 2023, the NYAG filed a lawsuit accusing crypto companies Gemini, Genesis, and DCG of defrauding 230,000 investors, including 29,000 New Yorkers, through the Gemini Earn investment program. The NYAG alleges that these companies deceived New York residents and provided false information about the investment program.
On February 8, DCG subsidiary Genesis reached a settlement 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 issued a statement refuting the NYAG’s allegations. They also filed motions to dismiss the lawsuit, describing the accusations as baseless and unsupported claims.
DCG firmly believes that the evidence will demonstrate the company’s innocence if the case continues. Additionally, DCG claims to have acted in good faith, following the advice of reputable professionals. The firm stated:
“We have done nothing wrong and have always acted with the best intentions, relying on the guidance of highly respected experts.”
DCG also refuted the NYAG’s allegations that they caused a liquidity crisis. The venture capital firm explained that it invested hundreds of millions into Genesis after the collapse of Three Arrows Capital (3AC). DCG also highlighted a $1.1 billion promissory note, which they consider a binding obligation vetted and endorsed by advisors, accountants, and the firm’s board of directors.
“We will vigorously contest these claims and eagerly anticipate resolving this matter so that we can focus on the immense growth opportunities in our industry in 2024 and beyond,” DCG added.
Ether staking surpasses $85 billion, US banks compete for a share of BTC custody, and more: Hodler’s Digest.