A U.S. judge rules to formally hear the fraud case against DCG

2025-04-12 08:41:33

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ChainCatcher news, according to Coindesk, a New York judge has ruled that the civil securities fraud lawsuit filed by New York Attorney General Letitia James against Digital Currency Group (DCG) and its executives can proceed.

The lawsuit was initiated in 2023, with defendants including DCG CEO Barry Silbert, the bankrupt subsidiary Genesis Global Capital and its former CEO Michael Moro, as well as the cryptocurrency exchange Gemini. Prosecutors allege that they collectively concealed a $1 billion asset shortfall at Genesis caused by the collapse of Three Arrows Capital. The defendants had previously sought to dismiss the lawsuit on the grounds that the prosecution lacked legal basis, but the court rejected that request, finding that the standard for the prosecution's allegations had been met.

In previous news, DCG and its executives once again urged the New York Attorney General to withdraw the civil fraud lawsuit.

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