Barry Silbert, CEO of venture capital firm Digital Currency Group (DCG), has requested the merger of two class action lawsuits over alleged losses during the crypto winter.
In the letter addressed to United States District Judge Stefan Underhill in Connecticut, the defendants argued that both cases arose from the same facts, presented overlapping legal issues, and offered nearly identical definitions of class. Defendants also argued that consolidation of cases would be necessary to avoid conflicting decisions and increase judicial efficiency.
Requested for Transfer of Case
Defendants wrote to Underhill that they requested U.S. District Judge Lewis Liman to transfer the case to Connecticut, New York.
The letter sent by the defendants stated: “The petition will be fully summarized by June 13, 2023 at the latest, and if Judge Liman grants his motion to refer to this court, the defendants intend to act swiftly to consolidate both cases.”
Plaintiffs in Connecticut opposed the move, arguing in the letter that it was premature to rule before the transfer of the case in New York was approved.
The Connecticut lawsuit alleges that Barry Silbert orchestrated a misleading transaction to hide the signs of a $1.1 billion bankruptcy after Three Arrows Capital began liquidation. Defendants are accused of committing securities fraud for making misleading or false statements.
During the ongoing litigation process, DCG has decided to shut down its main brokerage subsidiary, TradeBlock. According to the firm, this decision is due to the state of the broader economy and the uncertain regulatory environment for crypto in the United States.
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