Enterprise capital agency Digital Foreign money Group (DCG) and its CEO Barry Silbert have filed motions to dismiss the $3 billion lawsuit filed by the New York Lawyer Common’s Workplace (NYAG), arguing that the fraud allegations are “baseless.”
In October 2023, the NYAG filed a lawsuit in opposition to crypto corporations Gemini, Genesis and DCG for allegedly defrauding 230,000 traders, together with 29,000 New Yorkers, with the Gemini Earn funding program. The NYAG claims that the businesses defrauded New York residents and lied concerning the funding program.
On Feb. 8, DCG subsidiary Genesis settled with the NYAG. Nevertheless, only a day later, the NYAG filed a brand new and expanded grievance in opposition to DCG and included Genesis as one of many defendants. Following this, DCG filed an objection to the settlement reached by Genesis and the NYAG on Feb. 21.
On March 6, DCG and Silbert made a press release denying the allegations from the NYAG. As well as, the DCG and Silbert filed motions to dismiss the lawsuit, describing the allegations as “baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.”
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The DCG believes the info will present that the corporate “did nothing mistaken” ought to the case proceed. Moreover, DCG said it acted with one of the best intentions, following the recommendation of many professionals with the “highest of reputations.” They wrote:
“In the hunt for a headline-worthy scapegoat for losses brought on by others, the NYAG wrongfully seeks to painting DCG’s good-faith help of Genesis as taking part in fraud.”
DCG additionally countered the NYAG’s allegations in opposition to the agency, claiming that they had created a liquidity crunch. The enterprise capital agency stated it invested tons of of hundreds of thousands into Genesis after the Three Arrows Capital (3AC) collapse. DCG stated this was along with the $1.1 billion promissory notice, which they described as a binding obligation vetted and endorsed by advisers, accountants and the agency’s board of administrators.
“We are going to proceed to vigorously struggle these claims and we sit up for placing this problem behind us as we concentrate on the huge development alternative in our business in 2024 and past,” DCG added.
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