Genesis Files Shocking $3.3B Lawsuit Against DCG and Barry Silbert for Fraud!

by

Genesis Files $3.3B Lawsuits Against DCG and Barry Silbert

As a crypto investor, I’ve recently learned that Genesis, the struggling crypto lender, has filed a lawsuit against its parent company, Digital Currency Group (DCG), and CEO Barry Silbert. The allegations include fraudulent activities, mismanagement of funds, and irresponsible financial handling. Genesis is now seeking to recoup over $3.3 billion, claiming these funds were inappropriately taken from them.

The lawsuits, made public on May 19 by both the Delaware Court of Chancery and the U.S. Bankruptcy Court for the Southern District of New York, paint a grim and incriminating portrait. Genesis accuses DCG and its upper echelons of draining the company’s value in its closing days, while simultaneously creating an illusion of financial stability for both creditors and investors.

The accusations suggest that Digital Currency Group (DCG) allegedly used Genesis as a cash machine for corporations, withdrawing over a billion dollars through advantageous loans and hidden transactions. At the heart of this issue, Genesis’s Litigation Oversight Committee claims, was a tactic designed to boost DCG’s most valued asset, Grayscale Investments, at the expense of Genesis, driving it further into financial debt.

The main claim is that DCG supposedly fabricated phony transactions in order to suggest that Genesis had financial backing, when in truth, it was devoid of any real support. In actuality, reports state that Genesis was compelled to take GBTC shares as collateral, which came with limitations, prohibiting them from selling these shares, despite the mandatory holding periods expiring.

In this lawsuit, not only Silbert is involved, but also the former CEO of Genesis, Michael Moro, the ex-CFO of Digital Currency Group (DCG), Michael Kraines, DCG President Mark Murphy, and investment bank Ducera Partners. The allegations state that they all participated in misleading creditors and increasing their own wealth.

In a subsequent lawsuit, Genesis alleges that Digital Currency Group (DCG) and its associated entities secretly removed approximately $1.2 billion in both cash and cryptocurrencies in the year leading up to bankruptcy. This withdrawal, mainly executed during turbulent times such as the Terra-Luna crash and FTX’s downfall, supposedly enabled insiders to reclaim their funds entirely, while ordinary creditors were left without any recovery.

🚨 This upcoming week promises to be significant… The detailed legal complaints involving Genesis, filed against Digital Currency Group (DCG), Barry Silbert, and a group of insiders, have now been made public.

The partially redacted court filing in the Delaware Chancery Court accuses Silbert and DCG of controlling and abusing Genesis, pursuing actions that…

— GenesisLOC (@TheGenesisLOC) May 19, 2025

As a crypto investor, I’m not just dealing with one legal issue concerning DCG and its executives. In April, a New York judge gave the green light for most of the New York Attorney General’s civil fraud case against DCG, myself, and Michael Moro to move forward. This lawsuit revolves around a 10-year promissory note that allegedly concealed a $1 billion shortfall following the collapse of Three Arrows Capital.

In January 2023, Genesis initiated bankruptcy proceedings due to a staggering $14 billion in outstanding loans. Although they have reached an agreement with Gemini, their legal battles with DCG and Silbert are ongoing.

Read More

2025-05-20 14:51