{"id":292112,"date":"2023-01-25T10:50:52","date_gmt":"2023-01-25T10:50:52","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=292112"},"modified":"2023-08-06T17:28:38","modified_gmt":"2023-08-06T16:28:38","slug":"genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert\/","title":{"rendered":"Genesis creditors launch class action lawsuit against DCG, Barry Silbert"},"content":{"rendered":"<p>Genesis creditors are suing Digital Currency Group (DCG) and its CEO Barry Silbert for alleged violations of federal securities laws, according to a press release on Jan. 23.<\/p>\n<p><span class=\"xn-location\">The class action lawsuit seeks to hold DCG and Silbert liable as &#8220;Control Person(s)&#8221; in accordance with federal securities laws \u2014\u00a0<\/span>DCG being the parent company of Genesis, which <a href=\"https:\/\/cryptoslate.com\/genesis-global-caves-to-liquidity-issues-and-files-for-chapter-11-bankruptcy\/\">filed for bankruptcy<\/a> last week.<\/p>\n<h2>Class action lawsuit<\/h2>\n<p>The lawsuit was filed in the U.S. District Court for the District of\u00a0<span class=\"xn-location\">Connecticut by creditors who loaned their digital assets to Genesis between Feb. 2, 2021, and Nov. 16, 2022. <\/span><\/p>\n<p><span class=\"xn-location\">The lawsuit alleges that Genesis engaged in an unregistered securities offering. Thereby, Genesis violated the Securities Act by executing lending agreements involving securities without qualifying for an exemption from registration under the securities laws, as per the <a href=\"https:\/\/www.prnewswire.com\/news-releases\/investor-alert-silver-golub--teitell-llp-files-securities-class-action-lawsuit-against-digital-currency-group-inc-and-barry-silbert-on-behalf-of-individuals-and-entities-who-entered-into-digital-asset-lending-agreements-with-g-301728642.html\">press release<\/a>.\u00a0<\/span><\/p>\n<p>Furthermore, the complaint alleges that Genesis committed securities fraud by making false and misleading statements about its financial condition.<\/p>\n<p>Law firm Silver Golub & Teitell LLP \u2014 which is representing Genesis creditors in the lawsuit \u2014 noted:<\/p>\n<blockquote><p>&#8220;The scheme to defraud was carried out, according to the Complaint, in order to induce prospective digital asset lenders to loan digital assets to Genesis Global Capital and to prevent existing lenders from redeeming their digital assets.&#8221;<\/p><\/blockquote>\n<p>It is unclear at the moment whether Gemini Earn users \u2014 who have the <a href=\"https:\/\/cryptoslate.com\/genesis-owes-over-3-5b-to-top-50-creditors-owes-765-9m-to-gemini-earn-users\/\">largest claim against Genesis<\/a> for $765.9 million \u2014 are part of the class action lawsuit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Genesis creditors are suing Digital Currency Group (DCG) and its CEO Barry Silbert for alleged violations of federal securities laws, according to a press release on Jan. 23. The class action lawsuit seeks to hold DCG and Silbert liable as &#8220;Control Person(s)&#8221; in accordance with federal securities laws \u2014\u00a0DCG being the parent company of Genesis, [&hellip;]<\/p>\n","protected":false},"author":1386,"featured_media":348101,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[77901,60793],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Genesis creditors launch class action lawsuit against DCG, Barry Silbert<\/title>\n<meta name=\"description\" content=\"The lawsuit alleges that Genesis violated the Securities Act and seeks to hold DCG and Silbert liable as &quot;control persons.&quot;\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Genesis creditors launch class action lawsuit against DCG, Barry Silbert\" \/>\n<meta property=\"og:description\" content=\"The lawsuit alleges that Genesis violated the Securities Act and seeks to hold DCG and Silbert liable as &quot;control persons.&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-25T10:50:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-06T16:28:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/barry-silbert-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monika Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monika Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/genesis-creditors-launch-class-action-lawsuit-against-dcg-barry-silbert\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#person\",\"name\":\"Monika Ghosh\",\"url\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monika-ghosh\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/08\/monika-ghosh-author-300x300.jpg\",\"caption\":\"Monika Ghosh\"},\"jobTitle\":\"Former Reporter\",\"description\":\"Monika started reading about crypto in 2020 and went deeper and deeper down the rabbit hole. 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