Digital Currency Group (DCG) and its subsidiary Genesis Global Capital, along with DCG’s founder and CEO, Barry Silbert, have filed motions to dismiss a lawsuit brought by the New York Attorney General.

The lawsuit, which was first initiated in October 2023 and expanded the following month, alleges that DCG, Genesis, and Silbert defrauded investors, resulting in losses of $3 billion connected to the collapse of Three Arrows Capital and FTX.

This motion comes after a disputed proposed settlement between Genesis and New York Attorney General Letitia James, which DCG has objected to.

Previously, DCG opposed a settlement between the NYAG and Genesis, following an agreement that dropped charges against Genesis, a bankrupt crypto lender owned by DCG. DCG criticized the agreement as improper, calling it a “back-door attempt to circumvent U.S. bankruptcy law” and a “subversive arrangement.” Genesis Global Holdco was granted permission by the bankruptcy court to sell 35 million GBTC worth over $1.3 billion to satisfy creditor claims.

DCG has sought to delay this sale pending court approval of a debt repayment plan, expressing concerns about the premature sale of trusts. In a separate legal matter, Genesis had previously sued DCG for repayment of $620 million in loans. DCG later announced the payment of approximately $700 million to the lending platform, demonstrating its commitment to meeting creditor obligations.

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