Genesis Sues Over $3.3 Billion: Lawsuit Highlights Alleged Fraud and Insider Actions

Crypto lender Genesis has initiated legal action against its parent company, Digital Currency Group (DCG), and CEO Barry Silbert, alleging fraud, insider dealing, and reckless mismanagement that led to the firm’s collapse. The lawsuit seeks over $3 billion in damages from DCG and Silbert, claiming they exploited Genesis by draining assets and forcing it into bankruptcy while insiders cashed out. This action follows Genesis’s suspension of withdrawals in November 2022 and subsequent bankruptcy filing in early 2023, which left creditors holding the bag after billions in losses were incurred during the broader crypto market downturn.