Crypto trading platform Genesis and its parent company Digital Currency Group (DCG) are facing a collective securities lawsuit.
Genesis, which stopped its withdrawals on the grounds of FTX bankruptcy, could not straighten its back after stopping the transactions. Genesis shook the news with its Chapter 11 bankruptcy filing. The platform, where the assets of the crypto exchange Gemini were squeezed, also drew its parent company DCG into legal processes. A new one has been added to the ongoing lawsuits. A new class action lawsuit was also filed for violations of securities laws.
DCG and Genesis to Face Collective Securities Litigation
Genesis and its parent company, Digital Currency Group (DCG), are litigating with a liability of up to $4 billion.
A group of Genesis creditors sued DCG and its founder Barry Silbert for violations of federal securities laws. The lawsuit will be treated as a securities class action (SCA).
This lawsuit against DCG and Silbert alleges that Genesis was involved in the supply of unregistered securities in violation of securities laws. The lawsuit also alleges that Genesis also engaged in securities fraud through manipulation and speculation.
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