New York AG Pushes Back Against DCG, Silbert’s Motion to Dismiss Fraud Case
Summary
New York Attorney General Letitia James is continuing her lawsuit against Digital Currency Group (DCG), its founder Barry Silbert, and former CEO Soichiro “Michael” Moro. The lawsuit alleges that DCG, Silbert, and Moro defrauded investors by covering up a $1 billion hole in Genesis’ balance sheet caused by the collapse of crypto hedge fund Three Arrows Capital. James’ latest motion argues that DCG’s tweets reassuring investors were a “misrepresentation of existing facts” and a violation of New York’s anti-fraud law. The lawsuit also alleges that DCG defendants were actively involved in Genesis’ day-to-day affairs, violating the Martin Act. The NYAG's office has previously pursued cases against crypto companies under this law.
