DCG, Barry Silbert Move to Dismiss NYAG Lawsuit, Label Claims as ‘Baseless Innuendo’

Crypto venture giant Digital Currency Group (DCG) has submitted a request to dismiss the lawsuit brought by New York Attorney General Letitia James against the company.

According to the NYAG, Barry Silbert allegedly concealed losses at the company, thereby deceiving customers and investors.

• DCG’s founder and CEO, Barry Silbert, has also filed a motion to dismiss the accusations made by the Attorney General, deeming them as “a thin web of baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.”
• The official statement read,

“Today, DCG and Barry Silbert filed motions to dismiss the meritless civil complaint filed by the New York Attorney General against Gemini, Genesis, and DCG. As we have stated from the beginning, the allegations are a thin web of baseless innuendo, blatant mischaracterizations, and unsupported conclusory statements.”

• The lawsuit was first initiated in October 2023, wherein the NYAG accused Gemini, DCG, and Genesis of deceiving investors regarding the risks linked with the Gemini Earn platform, which guaranteed a ‘low-risk’ yield for investors who deposited their cryptocurrency.
• Genesis, responsible for managing deposits for Gemini Earn customers, became bankrupt last year, resulting in the loss of funds for customers of the Winklevoss-led exchange.
• While the initial fraud claim was $1 billion, a February amendment revealed that a larger number of investors suffered more damages than initially estimated, raising the figure to $3 billion.
• This was purportedly due to DCG and others concealing losses suffered during the collapse of crypto hedge fund Three Arrows Capital (3AC) and SBF-led defunct exchange FTX.