- DCG has filed to dismiss the lawsuit filed against it by the New York Attorney General
- The NYAG’s lawsuit alleges misleading investor claims against DCG, Gemini, and Genesis.
- DCG has called the claims that it misled 232,000 customers “baseless”
Digital Currency Group (DCG) has taken a bold stance against the New York Attorney General (NYAG) Letitia James by submitting a request to dismiss the ongoing lawsuit. The lawsuit, initiated last year, accused DCG along with Gemini and Genesis of misleading investors, a claim vehemently denied by DCG. In a filing this week, DCG called the accusations that DCG child company Genesis defrauded a combined 232,000 customers for over $3 billion “baseless.”
$3 Billion on the Line?
James sued Genesis, Gemini, and DCG in October 2023, alleging two schemes that her office alleges saw them misrepresent their creditworthiness and carry out financial concealment. DCG was initially accused of wrongdoing to the tune of $1 billion but this was expanded three weeks ago to include another $2 billion worth of complaints to her office following the filing of the suit.
DCG argued in a court document filed on Wednesday that the allegations against them constitute a “thin web of baseless innuendo,” with the company arguing that it followed expert financial guidance and upheld integrity in its operations.
Genesis and Gemini Chose Not to Fight
The lawsuit also argued that the company’s involvement in the alleged fraud was misrepresented, stating that DCG was extraneous to many of the accusations and affirming the validity of a promissory note that the NYAG had reportedly used as leverage, claiming that the note had been properly vetted.
The move by DCG, which was expected, is the latest development in a complex case that has seen Genesis close in on a resolution rather than gearing up for a legal battle. This follows in the footsteps of Gemini recently reaching its own settlement with the New York Department of Financial Services (NYDFS).
