DCG, an acronym for Digital Currency Group, shared the news of filing a motion to dismiss a civil lawsuit against Gemini, Genesis, and DCG. The New York Attorney General filed the lawsuit, alleging that DCG borrowed roughly 18k BTC from Genesis after Three Arrow Capital defaulted on its loans. There are many allegations; however, this is the one that DCG has broadly talked about in the official post.
DCG deemed the civil lawsuit to be without merit and added that it did nothing more than present conclusions without any supporting evidence. Moreover, DCG claimed that NYGA had mischaracterized its allegations, which are also said to be a thin web of innuendo. According to DCG, inaccuracies are spread all over the complaint, which the company has identified as misguided.
What affected DCG the most is that the civil lawsuit contains field speculation and misinformation about the company.
Barry Silbert, the Chief Executive Officer and Founder of the company, confirmed the development by sharing on X a post that Kristin Smith, the Chief Executive Officer of the Blockchain Association, previously endorsed.
DCG put forward an explanation, citing that it was being held responsible simply for coming out in support of Genesis after Three Arrows Capital defaulted on its loan. The sole purpose said DCG, for them, was to support Genesis financially with a firm belief in its future. DCG helped via promissory notes and additional capital.
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Hundreds of millions of dollars and assets were pumped into Genesis in good faith by the parent company; however, the assistance, especially the promissory note, is now being misunderstood, added DCG in the announcement post. The total value of assistance equates to roughly 30% of the current value of Genesis’s estate. It combines $1.4 billion in cash plus coins and $1.1 billion in promissory notes.
DCG continued to maintain that the allegations were outright false and inaccurate. The parent company denied borrowing BTC after Three Arrows Capital defaulted on the loan.
The company is now confident about coming out innocent if the case proceeds. It said that nothing wrong has been done and all actions have been done with the best intentions only after taking advice from elite firms.
It appears, however, that the community is not providing any support. Numerous members expect the request to be denied and for the court to be presented with all pertinent facts. Additionally, a number of transactions that were carried out to deceive consumers may amount to criminally fraudulent activities.
Several comments on the post have also linked their acts to those of SBF, that is, Sam Bankman-Fried, who has been found guilty of charges by the court for misappropriation of funds.
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The NYGA has not responded to the DCG post at the time of writing this article.
