Digital Currency Group countered the NYAG’s allegations, saying that after Three Arrows Capital collapsed, it invested hundreds of millions into Genesis.
Venture capital firm Digital Currency Group (DCG) and its CEO Barry Silbert have filed motions to dismiss the $3 billion lawsuit filed by the New York Attorney General’s Office (NYAG), arguing that the fraud allegations are “baseless.”
In October 2023, the NYAG filed a lawsuit against crypto firms Gemini, Genesis and DCG for allegedly defrauding 230,000 investors, including 29,000 New Yorkers, with the Gemini Earn investment program. The NYAG claims that the companies defrauded New York citizens and lied about the investment program.
On Feb. 8, DCG subsidiary Genesis settled with the NYAG. However, just a day later, the NYAG filed a new and expanded complaint against DCG and included Genesis as one of the defendants. Following this, DCG filed an objection to the settlement reached by Genesis and the NYAG on Feb. 21.
