Catenaa, Friday, May 23, 2025-Crypto lender Genesis Global has filed twin lawsuits against its parent company Digital Currency Group (DCG) and CEO Barry Silbert, seeking to recover more than $3.2 billion in alleged insider transactions that contributed to Genesis’ collapse and bankruptcy.
In a complaint lodged in Delaware’s Court of Chancery, Genesis accused Silbert and DCG of mismanaging the firm and engaging in self-dealing that enriched insiders while masking the company’s true financial condition.
Genesis claimed DCG exploited its position to drain the company of valuable crypto assets and liquidity.
The Delaware suit aims to reclaim at least $2.2 billion in Bitcoin, Ethereum, and other assets, which Genesis says are owed to creditors. A parallel lawsuit, filed in the US Bankruptcy Court in New York, alleges more than $1 billion in fraudulent transfers-including $450 million to DCG and $297 million in crypto to DCG International.
Genesis also identified $34 million in payments it says were falsely labeled as tax obligations.
Court documents state that many of the transactions occurred as Genesis faced mounting financial stress following the 2022 collapses of Terra-Luna and FTX. However, filings reveal Genesis had already become insolvent by late 2021, burdened by $14 billion in loans.
Genesis claims DCG ignored warnings from consulting firm Oliver Wyman in late 2021. The firm filed for bankruptcy in January 2023 and began distributing $4 billion in assets after a court-approved restructuring in 2024.
Earlier this year, DCG paid $38 million in SEC penalties for misleading investors.
