Crypto Credit Authority Genesis and its subsidiaries have filed two separate lawsuits against the Digital Currency Group (DCG), CEO Barry Silbert and some other executives. Within the scope of these cases, Genesis and Creditors demand that crypto money transfers, which they claim to be fraud, be taken back. The company aims to restore a total amount of around 3.2 billion dollars.
The case to be receivable to DCG
Genesis’s Court of Delaware, Chancery Court, the amount of compensation requested in the case of $ 2.2 billion. The Bankruptcy Court of New York Southern Region is requested to pay reimbursement for a amount of more than $ 1 billion. Genesis argues that within a year before the company is dragged into bankruptcy, irregular shots were made in the assets of the company in favor of DCG and its affiliated persons.
In the complaint in New York, DCG and associated people are allegedly collected their own receivables, even though they know that Genesis is financially difficult before bankruptcy. In this process, the public is not informed. DCG is the roof of many giant crypto money companies, including Grayscale. In the days of bankruptcy discussions at the end of 2022, this issue caused a significant decrease in the markets.
In November 2022, Genesis stopped customer shots and then applied to bankruptcy. In cases, the company’s borrowers are still in total crypto assets worth $ 2.2 billion, especially Bitcoin $104,976.58Ether and other crypto asset receivables are emphasized.
In the documents submitted to the Delaware court, Genesis was misunderstood and abused for his own interests. In the documents, “Silbert and his team recklessly managed Genesis and ultimately led the company to bankruptcy”.
Delaware Court Application: “Silbert and his team Genesis recklessly managed, exploited for their own interests and eventually dragged the company to bankruptcy.”
DCG’s statement and the course of the case
In a statement made by the DCG front, the allegations of the case were claimed to be unfounded. In a statement of the spokesman of the company, the same allegations have been put forward before, this case of the current case with a comprehensive solution between the various parties shadowed the efforts to terminate the existing case.
DCG spokesman: “These unquestioned cases consist of reiterated claims for two years. We have sought solutions with all stakeholders in the bankruptcy process. We will defend ourselves against these unfounded claims.”
In addition to the demands of compensation, the Genesis side was also in demand for a right -protected right for all the assets that managers acquired inappropriate during the period. The court requested measures to take measures to ensure the safe protection of these assets in the future.
Thanks to the close relationship with the main executives of the company, DCG and its affiliated executives are allegedly knowing that Genesis is in a difficult situation.
In two separate cases against DCG and some senior executives of Genesis, the claim that crypto assets worth millions of dollars were illegally withdrawn and the company is dragged into bankruptcy. DCG has initiated a legal struggle, arguing that all the allegations are unfair. Following the court decisions, it is possible that the practices and regulations on financial management, transparency and legal responsibilities of managers in crypto companies will be brought up again. In addition to internal controls for investors and sector stakeholders, the importance of sharing the financial situation in which the company is in is once again emphasized.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
