The lender of Crypto Genesis and his subsidiaries brought two proceedings against his parent company, Digital Currency Group (DCG), the CEO of DCG, Barry Silbert and other managers, seeking to recover what he called the fraudulent transfers of crypto worth billions of dollars.
In total, Genesis and its creditors are looking for $ 3.2 billion in both proceedings. He seeks to recover $ 2.2 billion in a prosecution filed in the Court of the Chancellery of the State of Delaware and more than a billion dollars in trials before the bankruptcy court for the South New York district.
The New York file indicates that the money has been withdrawn from Genesis to reimburse DCG, Silbert, affiliated companies and other initiates of the year who led to Genesis depositing for Chapter 11, even if the company was insolvent.
They “knew by their close relationship with Genesis that his business was on the verge of collapse” and took the opportunity to withdraw all their assets and recover 100% of crypto loans and a dollar granted to the platform while public members were “kept in ignorance”, according to the costume.
Genesis suspended withdrawals in November 2022 and went bankrupt the following year.
“Silbert and his friends exploited, exploited, then failed Genesis following a spectacular campaign of fraud and self-dallant,” said the Delaware file.
Its creditors are still short of $ 2.2 billion in cryptographic assets, including Bitcoin
Ether and other tokens, said the file.
In addition to the search for damage compensation, Genesis wants fair confidence in any active that “defendants have taken badly or converted during their mandate as managers, managers, administrators”, said the file.
“These baseless proceedings recycle the same two-year-old tired complaints in an opportunistic attempt at sophisticated investors to extract an additional DCG value,” said a company spokesperson. “We have worked in good faith with a wide range of stakeholders to try to achieve a complete resolution of the aspects linked to the DCG of the bankruptcy of Genesis. We will defend ourselves vigorously against these parasitic allegations.”
