Genesis files dual lawsuits to claw back $3.3B from DCG, Barry Silbert
Genesis has filed lawsuits against Digital Currency Group (DCG) and CEO Barry Silbert, alleging fraud and mismanagement that drained over $1 billion from the bankrupt crypto lender. The Delaware Court of Chancery complaint claims DCG used Genesis as a financial resource, misleading creditors about its financial health while funneling approximately $2.1 billion in digital assets away. Genesis creditors are owed around $2.2 billion in crypto assets, including Bitcoin and Ether. The lawsuit accuses Silbert and others of ignoring risk controls and engaging in reckless lending to benefit DCG's Grayscale Investments. A second complaint in New York alleges DCG withdrew over $1.2 billion before Genesis's bankruptcy, with insiders recovering their funds while creditors faced losses. Genesis seeks to recover over $3.3 billion through these lawsuits.
