Genesis Sues DCG, Seeks Recovery of Over $3.1B in Note and Asset Transfers
The post Genesis Sues DCG, Seeks Recovery of Over $3.1B in Note and Asset Transfers appeared on BitcoinEthereumNews.com. In brief Genesis has filed two lawsuits accusing DCG and key executives of orchestrating fraudulent transfers and misleading creditors as it neared collapse. The complaints accuse DCG of using Genesis as a corporate “alter ego” to enrich affiliates and conceal mounting losses from creditors. The lawsuits seek over $3.1B, including a $1.1B promissory note and more than $1.2B in allegedly improper transfers, some of which were made in crypto assets valued at up to $2.1B. Genesis Global has filed two new lawsuits against its parent company, Digital Currency Group, aiming to recover billions of dollars it alleges were improperly transferred as the lender’s financial condition deteriorated in 2022. The new filings, publicly released Monday, allege DCG, CEO Barry Silbert, and affiliated executives orchestrated fraudulent transfers and misleading disclosures. A Delaware Chancery Court complaint alleges that Genesis was “recklessly operated, exploited, and then bankrupted” by its parent company, following “a spectacular campaign of fraud and self-dealing.” Silbert allegedly “stepped in to conceal the crisis at Genesis from its lenders,” while being “acutely aware” of risks embedded in Genesis’ loan book, and its “vulnerability to Gemini and Bitvavo,” the lawsuits allege. Grayscale Investments allegedly benefited from the misconduct, though it is not named as a defendant. Should the court rule in favor of Genesis, the case could serve as precedent that would “strengthen creditor rights, expand liability for parent companies in digital finance as it pertains to ‘piercing the corporate veil,’ and establish new standards for transparency and accountability in the crypto industry,” Andrew Rossow, cyber and public affairs attorney and founder of Rossow Law, told Decrypt. Genesis is seeking over $3.1 billion, including a $1.1 billion promissory note and more than $1.2 billion in disputed transfers, some of which were made in crypto now valued at over $2 billion. “These baseless…
The post Genesis Sues DCG, Seeks Recovery of Over $3.1B in Note and Asset Transfers appeared on BitcoinEthereumNews.com.
In brief Genesis has filed two lawsuits accusing DCG and key executives of orchestrating fraudulent transfers and misleading creditors as it neared collapse. The complaints accuse DCG of using Genesis as a corporate “alter ego” to enrich affiliates and conceal mounting losses from creditors. The lawsuits seek over $3.1B, including a $1.1B promissory note and more than $1.2B in allegedly improper transfers, some of which were made in crypto assets valued at up to $2.1B. Genesis Global has filed two new lawsuits against its parent company, Digital Currency Group, aiming to recover billions of dollars it alleges were improperly transferred as the lender’s financial condition deteriorated in 2022. The new filings, publicly released Monday, allege DCG, CEO Barry Silbert, and affiliated executives orchestrated fraudulent transfers and misleading disclosures. A Delaware Chancery Court complaint alleges that Genesis was “recklessly operated, exploited, and then bankrupted” by its parent company, following “a spectacular campaign of fraud and self-dealing.” Silbert allegedly “stepped in to conceal the crisis at Genesis from its lenders,” while being “acutely aware” of risks embedded in Genesis’ loan book, and its “vulnerability to Gemini and Bitvavo,” the lawsuits allege. Grayscale Investments allegedly benefited from the misconduct, though it is not named as a defendant. Should the court rule in favor of Genesis, the case could serve as precedent that would “strengthen creditor rights, expand liability for parent companies in digital finance as it pertains to ‘piercing the corporate veil,’ and establish new standards for transparency and accountability in the crypto industry,” Andrew Rossow, cyber and public affairs attorney and founder of Rossow Law, told Decrypt. Genesis is seeking over $3.1 billion, including a $1.1 billion promissory note and more than $1.2 billion in disputed transfers, some of which were made in crypto now valued at over $2 billion. “These baseless…
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