Genesis Sues Parent Company DCG Over $2.1B in Disputed Crypto Transfers

Genesis Global Capital has initiated legal proceedings against Digital Currency Group (DCG) and its executives, including CEO Barry Silbert, in Delaware and New York courts. The lawsuit aims to recover $2.1 billion in disputed transfers, alleging fraud and self-dealing by DCG leadership.

The complaint, filed following Genesis’s August 2024 bankruptcy conclusion, accuses DCG of reckless lending practices and irrational operations. One million cryptocurrency coins are at stake in this high-profile case that could significantly impact creditor repayments.

Court documents reveal Genesis’s claims center on improper financial maneuvers by DCG insiders. The outcome may set precedents for corporate governance in the crypto lending space as the industry continues its maturation process.