Digital Currency Group (DCG) and CEO Barry Silbert are facing a securities class action (SCA) lawsuit from a group of Genesis creditors.
DCG and Barry Silbert face a securities lawsuit
gave A case was filed by Silver Golub & Tetel (SGT), a law firm based in Connecticut, on behalf of those who entered into lending agreements involving digital assets with Genesis.
SGT is known for handling major crypto industry lawsuits such as class actions. Trial Filed against popular digital asset exchange Coinbase in March 2022.
The lawsuit against DCG and Silbert alleges that Genesis violated securities laws by entering into securities lending agreements without being exempt from registration under federal securities laws and thereby offering unregistered securities.
Additionally, the lawsuit claims that Genesis engaged in fraudulent securities activity by providing false or misleading information about the company’s financial condition.
“According to the complaint, the fraudulent scheme was designed to induce potential digital asset borrowers to loan digital assets to Genesis Global Capital and to prevent existing borrowers from redeeming their digital assets.”
Statement of Silver Golub and Tettel
Genesis Bankruptcy Proceedings
The recent news comes as Genesis, a subsidiary of DCG, is going through its first bankruptcy proceedings since filing for Chapter 11 bankruptcy on Jan. 19. Collected by the company. $5.1 billion in liabilities Before FTX’s exposure to the disaster halted its return to lending platforms.
New hope for a settlement with creditors by the end of the week has emerged for Genesis, as the company’s attorney, Sean O’Neill, revealed during a January 23 preliminary hearing in the US Bankruptcy Court for the Southern District of NY.
Furthermore, O’Neal suggested that the company could be Get out of bankruptcy Within four months, he also said Genesis was “somewhat confident” it would reach an agreement with creditors by the end of the week, and would ask the court to appoint an arbitrator if necessary. will
#DCG #Barry #Silbert #face #securities #lawsuit