Genesis Global has filed two aggressive lawsuits targeting its parent company, Digital Currency Group (DCG), and CEO Barry Silbert.
The crypto lender claims they mishandled company assets and caused its collapse.
The legal battle kicked off in Delaware Chancery Court. Genesis accuses Silbert and DCG of using the company for personal gain. Executives allegedly moved funds recklessly and misled both clients and partners.
Although Grayscale Investments appears in the complaint, Genesis didn’t name the company as a defendant. Instead, it focuses on how Silbert and his allies managed the firm into bankruptcy.
Billions at Stake in Crypto Asset Dispute
Genesis wants at least $2.2 billion in bitcoin, ether, and other crypto assets returned. The company argues that DCG and insiders misused the assets in 2022 while masking financial troubles.
A separate filing in New York bankruptcy court makes similar claims. This time, Genesis outlines more than $1 billion in alleged fraudulent transfers made by DCG and Silbert.
Lawyers for Genesis demand that the court void those transactions. If successful, the recovered funds would help repay Genesis creditors still waiting after the bankruptcy.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/crypto-lender-genesis-sues-dcg-seeks-billions-back/