recently filed for bankruptcy cryptocurrency company Genesis‘s parent company Digital Currency Group (DCG) and its founder Barry Silbert A lawsuit was filed against him.
As Cointelegraph reported, a group of Genesis creditors has filed a securities lawsuit against DCG and its CEO, Barry Silbert, for alleged violations of federal securities laws.
Connecticut-based law firm litigating this case on behalf of Genesis creditors Silver Golub & Teitell LLP (SGT) opened.
In its complaint, SGT alleged that Genesis deliberately misrepresented its financial position, committing securities fraud by making false and misleading statements, in conjunction with Genesis’ violation of Section 10(b) of the Securities Exchange Act.
According to SGT’s petition, Genesis said the fraudulent acts were carried out by encouraging potential digital asset lenders to lend their digital assets to Genesis and preventing existing lenders from using their digital assets.
Genesis Global Capital, which suspended withdrawals on November 16, 2022 after the bankruptcy of FTX, filed for bankruptcy on January 19, 2023.
Cryptocurrency exchange founded by the Winklevoss brothers among the creditors of Genesis Gemini is also included.
Gemini, one of Genesis’ largest creditors, owes its customers $900 million.
Threatening to sue DCG and Barry Silbert after Genesis’ bankruptcy, following news of SGT’s lawsuit Gemini co-founder Cameron WinklevossIt has come to the fore whether SGT will participate in the lawsuit filed by SGT.
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