Digital Currency Group, CEO Barry Silbert File to Dismiss $3 Billion NYAG Lawsuit

By: Eva Baxter

Digital Currency Group (DCG) and its CEO, Barry Silbert, have filed motions to dismiss the $3 billion lawsuit brought against them by the New York Attorney General's Office (NYAG). The lawsuit, which was filed in October 2023, accuses DCG and its subsidiary, Genesis Capital, of misleading customers about the risks connected to their Gemini Earn program, resulting in customer losses of around $3 billion.

Genesis Capital has already agreed to settle the lawsuit separately, with DCG filing an objection. In their defense, DCG firmly denies the allegations put forth by the NYAG, describing them as "baseless innuendo", lacking substantial evidence and substantial backing from reputable consultants and investment advisors. The company asserts it acted in good faith, factoring in advice from several reputed consultants and investment advisors.

DCG characterizes the allegations as a misguided attempt by the NYAG to find a scapegoat for the losses endured by customers due to factors beyond the firm's control. They point out they did more than expected, injecting hundreds of millions of dollars into Genesis Capital prior to its bankruptcy filing. DCG's defense further criticizes the NYAG for indiscriminately linking Silbert with other defendants and basing its case on improper group pleading.

Silbert's defense team underlines procedural concerns, taking issue with the NYAG's decision to proceed with the lawsuit without waiting for Silbert's testimony. This testimony was delayed due to his child's health issues, with the defense team interpreting the move as indicative of the NYAG's haste and disregard for a comprehensive investigation.