Genesis files are adjusted against DCG to recover the billion -billions of deceptive transfers
The Crypto Lender Genesis and its subsidiaries have filed two lawsuit against its parent company, Digital Currency Group (DCG), DCG CEO Barry Silbert and other executives, seeking to recover the so -called fraudulent crypto transfer of billion -billions of dollars.
In total, Genesis and its creditors are looking for $ 3.2 billion throughout the two suits. It is looking to recover $ 2.2 billion in a suit filed in Court of Chancery of the state of Delaware and more than $ 1 billion in a suit on Bankruptcy court For the Southern District of New York.
New York Filing said the money was removed from Genesis to compensate DCG, Silbert, affiliates and other insider of the year that led to the filing of Genesis for Chapter 11 even though the company was pointless.
“They knew by their close contact with Genesis that its business was on the brink of collapse” and took the opportunity to withdraw all of their properties and recover 100% of crypto and dollar loans made on the platform while members of the public were “kept dark,” the suits expressed.
Genesis suspended backward in November 2022 and went to losses next year.
“Silbert and his cronies have been carelessly operated, exploited, and then bankrupted Genesis following an amazing campaign of fraud and self-contact,” the Pare of the Delaware filing.
Its creditors are still short $ 2.2 billion worth of crypto assets including bitcoin
Ether and other tokens, the filing said.
Next to finding a tribute of injuries, Genesis wants an equal Trust In any possession the “Defendants were improperly taken or converted into their tenure as managers, officials, directors,” the filing said.
“The baseless suits recycle the same tired, two-year-old claim to an opportunist attempt by sophisticated investors to extract additional value from DCG,” a spokesman for the company said. “We worked with good faith with a wide range of stakeholders to try to achieve a comprehensive resolution of aspects associated with the DCG of Genesis losses. We diligently defend ourselves against these angry claims.”
