DCG, Moro Deny Cover-Up in NYAG Lawsuit, Assert Genesis Support

IconCryptoNewsTerminal Staff02 Jul, 2024

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DCG, Moro Deny Cover-Up in NYAG Lawsuit, Assert Genesis Support

Digital Currency Group (DCG), former Genesis CEO Michael Moro, and DCG CEO Barry Silbert have formally responded to the lawsuit filed by the New York Attorney General’s Office (NYAG), denying accusations of a Genesis loss cover-up. The defendants refute the NYAG's allegations that they conspired to conceal a $1 billion loss at Genesis following the collapse of crypto hedge fund Three Arrows Capital (3AC). They maintain that the meeting in question aimed to support Genesis as a subsidiary. DCG emphasized its role as a responsible parent company, providing guidance, financial assistance, and communication support to Genesis. The promissory note extended to Genesis, they argue, demonstrates DCG's commitment despite its own financial challenges. Last year, the NYAG filed a lawsuit against DCG, crypto exchange Gemini, Genesis, Moro, and Silbert, alleging that over $1 billion was obtained from investors through the Gemini Earn program. The lawsuit also accused them of concealing Genesis's lending losses. While Genesis and Gemini have reached settlements with the NYAG, DCG and the executives seek the dismissal of the case against them.

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