The Digital Currency Group (DCG) filed a motion to dismiss the $3 billion lawsuit brought by the New York Attorney General’s office, arguing that the case lacked merit.
DCG responded to the New York AG’s allegations by stating that it invested hundreds of millions of dollars in Genesis after the collapse of Three Arrows Capital
The Digital Currency Group and Barry Silbert filed motions to dismiss the $3 billion lawsuit brought by the New York Attorney General’s Office, arguing that the allegations of fraud lacked factual and legal basis.
In October, the New York Attorney General’s office filed a lawsuit against crypto firms Gemini, Genesis, and DCG, alleging that they defrauded over 230,000 investors with the Gemini Earn investment program, including 29,000 investors in New York.
The New York Attorney General’s Office alleged that Gemini, Genesis, and DCG defrauded New York residents, misrepresenting the terms of the Gemini Earn program and falsely portraying the investment as safe and secure.
On Feb. 8, DCG’s subsidiary, Genesis, settled with the New York Attorney General’s office. However, just one day later, the NYAG filed a new complaint against DCG, including Genesis as a defendant.
On Feb. 21, DCG filed an objection to the settlement reached by Genesis and the New York Attorney General, making various legal arguments.
In a public statement on March 6, DCG and Silbert refuted the allegations made by the New York Attorney General’s Office.
In addition to the public statement, DCG and Silbert filed motions to dismiss the lawsuit, alleging that the New York Attorney General’s claims were based on speculation, misleading information, and insufficient evidence.
DCG stated that it would be able to demonstrate its innocence in court, should the lawsuit proceed.
DCG claimed that it acted in good faith based on the advice of trusted professionals with unassailable reputations.
It stated:
“In search of a headline-worthy scapegoat for losses caused by others, the NYAG wrongfully seeks to portray DCG’s good-faith support of Genesis as participating in fraud.”
DCG refuted the New York Attorney General’s claims that the company’s actions had caused a liquidity crunch, asserting that the claims were baseless.
DCG stated that it invested hundreds of millions of dollars in Genesis after the 3AC collapse, to help the company maintain its liquidity.
DCG further clarified that the promissory note was the result of a careful decision-making process, which involved multiple third-party experts and the company’s board of directors.
“We will continue to vigorously fight these claims and we look forward to putting this issue behind us as we focus on the massive growth opportunity in our industry in 2024 and beyond,” DCG added.
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