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DCG & Barry Silbert Face Class Action Lawsuit From Creditors By CoinEdition

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© Reuters DCG & Barry Silbert Face Class Action Lawsuit From Creditors

  • DCG and Barry Silbert are facing a class action lawsuit from creditors of Genesis.
  • The lawsuit alleges a violation of federal securities laws by DCG and Silbert.
  • The law firm representing the creditors has previously led a similar lawsuit against Coinbase (NASDAQ:).

Trouble seems to be mounting for Barry Silbert and his crypto empire as creditors of Genesis Global have brought a class action lawsuit against him and the Digital Currency Group (DCG). Genesis, one of DCG’s key subsidiaries, is currently undergoing chapter 11 bankruptcy proceedings.

Silver Golub & Teitell LLP, the Connecticut-based law firm, has filed a securities class action lawsuit against the Digital Currency Group as well as its founder and CEO Barry Silbert. The law firm’s clients seek to represent two putative classes of individuals and entities who loaned digital assets to Genesis Global Capital as per lending agreements.

According to the press release by the law firm, the digital assets were loaned to Genesis between February 2, 2021, and November 16, 2022. The latter had announced last year that it would stop honoring withdrawal requests from creditors who had loaned digital assets, due to concerns surrounding the firm’s liquidity.

The class action lawsuit has been filed in U.S. District Court for the District of Connecticut. The lawsuit alleges that DCG a …

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