Judge Rules Against Most of DCG’s Motion to Dismiss NYAG’s Civil Securities Fraud Suit
Powered by @unfolded- A New York judge has allowed most of Attorney General Letitia James' civil securities fraud suit against Digital Currency Group (DCG) and its executives to proceed to trial.
- The lawsuit alleges that DCG and its executives misled investors about a $1 billion deficit in Genesis Global Capital's balance sheet following the collapse of Three Arrows Capital in 2022.
- While DCG maintains that its promissory note to Genesis was legitimate, the suit claims no payments have been made under it, and the judge ruled that the Gemini Earn program qualifies as a security under New York law.
- DCG plans to continue fighting the lawsuit, expressing satisfaction with the dismissal of some claims but asserting that the remaining allegations are unfounded.