{"id":542927,"date":"2023-01-24T14:33:23","date_gmt":"2023-01-24T11:33:23","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/genesis-creditors-file-securities-lawsuit-against-barry-silbert-and-dcg\/"},"modified":"2023-01-24T14:33:23","modified_gmt":"2023-01-24T11:33:23","slug":"genesis-creditors-file-securities-lawsuit-against-barry-silbert-and-dcg","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/genesis-creditors-file-securities-lawsuit-against-barry-silbert-and-dcg\/","title":{"rendered":"# Genesis creditors file securities lawsuit against Barry Silbert and DCG"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be747a8824\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be747a8824\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/genesis-creditors-file-securities-lawsuit-against-barry-silbert-and-dcg\/#%E2%80%9D_Genesis_creditors_file_securities_lawsuit_against_Barry_Silbert_and_DCG_%E2%80%9C\" >&#8221; Genesis creditors file securities lawsuit against Barry Silbert and DCG &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Genesis_creditors_file_securities_lawsuit_against_Barry_Silbert_and_DCG_%E2%80%9C\"><\/span>&#8221; Genesis creditors file securities lawsuit against Barry Silbert and DCG &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvYTlkMDU5YjItMDlhNy00ZWNiLWI4NmQtMjViMmQxY2Q3ZjNmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>Troubled cryptocurrency company Digital Currency Group (DCG) is facing more legal issues as its subsidiary Genesis Capital got sl<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed with a new class action lawsuit.<\/p>\n<p>A group of Genesis creditors filed a securities class action (SCA) lawsuit against DCG and its founder and CEO Barry Silbert, alleging violations of the federal securities laws.<\/p>\n<p>The lawsuit was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/investor-alert-silver-golub--teitell-llp-files-securities-class-action-lawsuit-against-digital-currency-group-inc-and-barry-silbert-on-behalf-of-individuals-and-entities-who-entered-into-digital-asset-lending-agreements-with-g-301728642.html\">filed<\/a> by Connecticut-based law firm Silver Golub &amp; Teitell (SGT) on behalf of individuals and entities who entered into digital asset lending agreements with Genesis. The law firm is known for handling major industry lawsuits, including a class action suit filed against Coinbase in March 2022.<\/p>\n<p>The new complaint against DCG and Silbert alleges that Genesis engaged in an unregistered securities offering in violation of securities laws by executing lending agreements involving securities without qualifying for an exemption from registration under the federal securities laws.<\/p>\n<p>The lawsuit also alleges that Genesis committed securities fraud through a scheme to defraud potential and existing digital asset lenders by making false and misleading statements. According to plaintiffs, Genesis intentionally misrepresented the financial condition of Genesis, violating section 10(b) of the United States\u2019 Securities Exchange Act.<\/p>\n<p>\u201cThe scheme to defraud was carried out, according to the complaint, in order to induce prospective digital asset lenders to loan digital assets to Genesis Global Capital and to prevent existing lenders from redeeming their digital assets,\u201d SGT lawyers noted.<\/p>\n<p>Founded in 2015, DCG is a Connecticut-based crypto firm that serves as the parent company of multiple digital asset and blockchain-focused subsidiaries, including Genesis, digital asset manager Grayscale Investments, crypto mining firm Foundry and crypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> outlet Coindesk. DCG\u2019s current CEO Silbert maintains a controlling 40% equity stake in the firm and also serves as chairman of its board of directors.<\/p>\n<p>The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> comes amid Genesis going through its first bankruptcy hearings on Jan. 23 after the firm filed for bankruptcy on Jan. 19. The bankruptcy filing came a few months after Genesis halted withdrawals on Nov. 16 as it became unable to honor redemption requests amid the bear cryptocurrency market.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Genesis eyes fast resolution to creditor disputes and bankruptcy exit in May<\/em><\/strong><\/p>\n<p>Gemini, a crypto trading platform founded by Winklevoss brothers, is one of the biggest creditors of Genesis, with the firm reportedly owing $900 million to Gemini\u2019s clients. On Jan. 20, Gemini co-founder Cameron Winklevoss took to Twitter to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cameron\/status\/1616302997503627264?s=20&amp;t=ZworxUFLYXkNF2CyODl8Kg\">declare<\/a> that the firm has been preparing to take direct legal action against DCG, Silbert and \u201cothers who share responsibility for the fraud.\u201d<\/p>\n<p>It appears to be unclear whether Gemini is part of the lawsuit filed by SGT. The law firm did not immediately respond to Cointelegraph\u2019s request to comment.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/genesis-creditors-file-securities-lawsuit-against-barry-silbert-and-dcg\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Genesis creditors file securities lawsuit against Barry Silbert and DCG &#8220; Troubled cryptocurrency company Digital Currency Group (DCG) is facing more legal issues as its subsidiary Genesis Capital got slapped with a new class action lawsuit. A group of Genesis creditors filed a securities class action (SCA) lawsuit against DCG and its founder and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":542928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/a9d059b2-09a7-4ecb-b86d-25b2d1cd7f3f.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[82372,74862,90192,71433,55229,70934],"class_list":["post-542927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-barry-silbert","tag-bitcoin","tag-digital-currency-group","tag-court","tag-law","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=542927"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/542927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/542928"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=542927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=542927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=542927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}