Digital Currency Group Seeks Dismissal of NYAG Lawsuit

DCG and CEO Barry Silbert file motions to dismiss the New York Attorney General's lawsuit, labeling the allegations as 'baseless innuendo.'

Digital Currency Group and CEO Barry Silbert have filed motions to dismiss a lawsuit brought by New York Attorney General Letitia James, alleging fraud of over $3 billion.
The lawsuit accuses DCG of defrauding investors through its lending subsidiary Genesis, in partnership with crypto exchange Gemini, following the collapse of crypto firms Three Arrows Capital and FTX.
DCG argues that the allegations are a 'thin web of baseless innuendo' and that they acted under the advice of top accountants and investment bankers.
Genesis proposed a settlement with the NYAG in February, which DCG later objected to, calling it 'a back-door attempt to circumvent U.S. bankruptcy law.'
DCG claims to have contributed approximately $1.4 billion into Genesis following the collapse of Three Arrows Capital, contrary to allegations of withdrawing funds.