Genesis sues the Parent Company DCG for disputed transfers

Cripto Lender Genesis Global Capital filed two lawsuits against his home company, digital currency group and executive director Barry Silbert, which would want to return over a billion dollars in allegedly irregular transfers, while Genesis was unsolvent.

According to the 20th May report The Law on Bloomberg, Genesis accuses DCG and insiders of “self-assessment, fraud and poor governance”, arguing that funds occupied funds through reckless credit practices and deceitful financial disclosures. An appeal, partially redacted, seeks a return of a million digital means worth $ 2.1 billion to return creditors.

The DCG and its subsidiaries, including investments in Gray Sauce, were enriched for the cost of Genesis customers in the wrong market in the financial health of the Lender.

In a special lawsuit, he filed in the American bankruptcy court for New York South District, Genesis seeks to stories over a billion dollars in transfers in the year leading to it bankruptcy In January 2023. years. They include $ 448 million DCG, $ 136 million DCG International, and among other things, and 101 million funds for $ 50 million. Genesis also wants to recover $ 34 million in relation to the payment of taxes that they say they are fraud.

The submission of requests that these transactions occur in the middle of the crypto Tormoil crypt on the market, which included a collapse of Tera-Luna, three stocks of arrows and FTX. According to reports, Genesis was already insolvent until the end of 2021. years, and owed $ 14 billion unpaid loans.

The Legal Team for Genesis claims that DCG insiders knew about the growing risks of the lender, but did nothing about them. To protect DCG from the financial consequences of Genesis, instead, they are allegedly transferred property inside.

Posted for protection from Chapter 11. January 2023. and completed its restructuring in August 2024. years, distribution Approximately $ 4 billion in cash and crypto for credentials. That plan, which DCG contraryIt turned on that $ 2.2 billion payments to Gemini earns users and unformity recovers based on current assets prices.

Both lawsuits are trying to hold DCG responsible for their alleged participation in the re-evanation and reinforcement of the return of creditors.