Genesis Files Suits Against DCG to Recover Billions Worth of Allegedly Fraudulent Transfers

Crypto lender Genesis and its subsidiaries filed 2 lawsuits against its genitor company, Digital Currency Group (DCG), DCG CEO Barry Silbert and different executives, seeking to retrieve what it called fraudulent transfers of crypto worthy billions of dollars.

In total, Genesis and its creditors are seeking $3.2 cardinal crossed the 2 lawsuits. It is seeking to retrieve $2.2 cardinal successful a suit filed successful the Court of Chancery of the State of Delaware and much than $1 cardinal successful a suit astatine the Bankruptcy Court for the Southern District of New York.

The New York filing says wealth was withdrawn from Genesis to repay DCG, Silbert, affiliates and different insiders successful the twelvemonth that led up to Genesis filing for Chapter 11 adjacent though the institution was insolvent.

They "knew done their adjacent narration with Genesis that its concern was connected the brink of collapse" and took the accidental to retreat each their assets and retrieve 100% of crypto and dollar loans made to the level portion members of the nationalist were "kept successful the dark," the suit alleges.

Genesis suspended withdrawals successful November 2022 and went into bankruptcy the pursuing year.

"Silbert and his cronies recklessly operated, exploited, and past bankrupted Genesis pursuing a spectacular run of fraud and self-dealing," the Delaware filing alleges.

Its creditors are inactive abbreviated $2.2 cardinal worthy of crypto assets including bitcoin BTC, ether ETH and different tokens, the filing said.

Alongside seeking an grant of damages, Genesis wants an equitable trust implicit immoderate assets the "defendants improperly took oregon converted during their tenure arsenic managers, officers, directors," the filing said.

“These baseless lawsuits recycle the aforesaid tired, two-year aged claims successful an opportunistic effort by blase investors to extract further worth from DCG," a spokesperson for the institution said. "We worked successful bully religion with a wide scope of stakeholders to effort to execute a broad solution of the DCG-related aspects of the Genesis bankruptcy. We volition vigorously support ourselves against these spurious claims."