Genesis, a former subsidiary of DCG, was among the most high-profile casualties of the crypto credit crisis that unfolded in the wake of the Terra-Luna collapse and broader market downturn.
One of the lawsuits, filed in the Delaware Court of Chancery, accuses Silbert and other insiders of “recklessly” managing Genesis, claiming they engaged in fraud and self-dealing that ultimately led to the company’s collapse.
Genesis eventually filed for Chapter 11 bankruptcy in January 2023, listing over 100,000 creditors and up to $10 billion in liabilities. It completed a restructuring process in August 2023 and began distributing $4 billion in remaining assets to creditors.
DCG, in response to the lawsuits, issued a statement rejecting the allegations. A spokesperson stated:
These baseless lawsuits recycle the same tired, two-year old claims in an opportunistic attempt by sophisticated investors to extract additional value from DCG. We worked in good faith with a wide range of stakeholders to try to achieve a comprehensive resolution of the DCG-related aspects of the Genesis bankruptcy. We will vigorously defend ourselves against these spurious claims.
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