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Briefly
- Genesis filed two lawsuits charged with DCG and key executives of orchestrating false transfers and misconceptions of creditors as they approached the collapse.
- The complaints accuse DCG of using Genesis as a corporate “alter ego” of enriching branches and concealing losses of training from creditors.
- The lawsuits are looking for more than $ 3.1 billion, including $ 1.1 billion of bills of exchange and more than $ 1.2 billion allegedly irregular transfers, some of which were carried out in crypto property worth up to $ 2.1 billion.
Genesis Global filed two new lawsuits against his home company, a digital currency, aiming to regain billions of dollars, which he claims to have been improperly transferred because the financial condition of the borrower was worsening in 2022.
AND New applicationPublicly published on Monday, he claims that DCG, the CEO Barry Silbert and the associated executives orchestrated false transfers and misconceptions.
Delaware office complaint He states that Genesis “recklessly managed, exploited, then bankrupt” his home company, after a “spectacular campaign of fraud and self-adhesion”.
Silbert allegedly “came in to cover up a crisis in Genesis from his lenders,” although he is “aware” of the risk built in the Book of Genesis of Genesis and his “vulnerability on Gemini and Bitwavo,” the lawsuit said.
Grayscale Investments allegedly benefited from incomplete behavior, although he was not named as a defendant.
If the court rule in favor of becoming, the case could serve as a precedent that would “strengthen creditors’ rights, spread the responsibility for parent companies in digital finances because it refers to” breaking through corporate veils “and establish new standards for transparency and responsibility in the Krypto industry,” Andrew Rossow, Cyber and Founded, said Decipher.
Genesis is looking for more than $ 3.1 billion, including $ 1.1 billion of bills of exchange and more than $ 1.2 billion in dispute transfers, some of which have been made in cryptocurrencies now worth over $ 2 billion.
Decipher reached for legal representatives for both sides.
Promises and losses
Central in submission of a sign in Delaware is DCG’s issue of 10-year-old, $ 1.1 billion billions of bills of bill of exchange in 2022, is intended to lose genesis of losses from losses Three arrows of capital.
The note had 1% interest rate and reportedly failed to provide real liquidity.
The lawsuits were supported by the Genesis Civil Procedure Committee (LOC), which the bankruptcy court appointed to present the interests of the creditor.
The Committee claims that the defendants have expanded the wrong information and false financial statements to prevent banking initiating and profit from the failed lender before the collapse.
The first signs of the Bank “appeared on May 7, 2022,” he writes in Delaware.
“Within three days, Luna’s price per money fell from 80 to almost zero,” the tokens (Terrausd and Luna) became “basically worthless” and wiped $ 45 billion at the time.
Transfers and recovery
Genesis endured a separate federal complaint In New York, more than $ 1.2 billion allegedly preferential transfer to DCG and insiders before it was described in detail Chapter 11. Submitting the application in January 2023.
These transfers included $ 448 million for DCG, $ 136 million in DCG International, and a $ 101 million in increasing fund, among others.
Genesis also claims that $ 34 million in tax payments to DCG was false and asked for over 19,000 BTC, 69,000 ETH and 17 million tokens in another digital property.
DCG and former CEO Genesis Michael Moro agreed in January 2025 $ 38 million To settle the allegations of the SEC to seduce investors for exposing to Genesis a demolished capital of three arrows.
Sec said DCG created a “material false impression” about the financial health of the lender after not paying, while no party recognized or denied the allegations.
By May 2024. Genesis reached a proposed settlement of two billion dollars with DCG, although the litigation remains underway.
“It’s almost comic tragic: billions of dollars spinning between the so -called ‘industry leaders’ that should set the standard, but we are still discussing the basics of fiscal responsibilities and fiduciary duties,” Rossow said.
Edited Sebastian Sinclair
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